Inter-Zonal Congestion Management. 7. 2.5 .1 The scheduling procedures in the Day-Ahead Market and Hour-Ahead Market will first ascertain, through power flow calculations, whether or not Inter- Zonal Congestion would exist if all of the Preferred and Revised Schedules submitted by the Scheduling Coordinators , including any tr ansmission associated with Ancillary Services bid were accepted by the ISO. If no Inter-Zonal Congestion would exist, then all Inter-Zonal Interface uses will be accepted , and the Usage Charges will be zero and the ISO will then utilize its Intra-Zonal Congestion Management .
7. 2.5 .2 The purpose of Inter-Zonal Congestion Management is to allocate the use of, and determine the marginal value of, active Inter-Zonal Interfaces. Inter-Zonal Congestion Management will comply with the requirements stated in Sections 7.2.2, 7.2.4 and 7.2.5.
7. 2.5 .2 .1 Inter-Zonal Congestion Management will keep each Scheduling Coordinator's portfolio of Generation and Load (i.e., the Scheduling Coordinator's Preferred Schedule) separate from the portfolios of the other Scheduling Coordinators, as the ISO adjusts the Schedules to alleviate Inter-Zonal Congestion.
7. 2.5 .2 .2 If Congestion would exist on one or more active Inter-Zonal Interfaces, then the ISO shall execute its Inter-Zonal Congestion Management algorithms to determine a set of tentative (in the Day-Ahead procedure) allocations of Inter-Zonal
7. 2.5 .2 .3 As part of the Day-Ahead scheduling procedure, but not the Hour- Ahead scheduling procedure, Scheduling Coordinators will be given the opportunity to adjust their Preferred Schedules (including the opportunity to make trades amongst one another) and to submit Revised Schedules to the ISO, in response to the ISO's Suggested Adjusted Schedules and prices for Inter-Zonal Interfaces.
7. 2.5 .2 .4 If the ISO receives any Revised Schedules it will execute its Inter-Zonal Congestion Management algorithms using revised Preferred Schedules, to produce a new set of allocations and prices. At the conclusion of these calculations, the ISO shall select either (i) the first set of tentative allocations and prices or (ii) the second set of allocations and prices. The ISO will make its selection based on which of the two sets of allocations results in the lower total amount of Usage Charge revenues to the ISO for the hour.
7. 2.5 .2 .5 All of the ISO's calculations will treat each Settlement Period independently of the other Settlement Periods in the Trading Day.