Common use of Market Flow Determination Clause in Contracts

Market Flow Determination. The determination of Market Flows builds on the “Per Generator” methodologies that were developed by the NERC Parallel Flow Task Force. The “Per Generator Method Without Counter Flow” was presented to and approved by both the NERC Security Coordinator Subcommittee (SCS) and the Market Interface Committee (MIC). 1 This methodology is presently used in the IDC to determine NNL contributions. Similar to the Per Generator Method, the Market Flow calculation method is based on Generator Shift Factors (GSFs) of a market area’s assigned generation and the Load Shift Factors (LSFs) of its load on a specific Flowgate, relative to a system swing bus. The GSFs are calculated from a single bus location in the base case (e.g. the terminal bus of each generator) while the LSFs are defined as a general scaling of the market area’s load. The Generator to Load Distribution Factor (GLDF) is determined through superposition by subtracting the LSF from the GSF. The determination of the Market Flow contribution of a unit to a specific Flowgate is the product of the generator’s GLDF multiplied by the actual output (in megawatts) of that generator. The total Market Flow on a specific Flowgate is calculated in each direction; forward Market Flows is the sum of the positive Market Flow contributions of each generator within the market area, while reverse Market Flow is the sum of the negative Market Flow contributions of each generator within the market area. For purposes of the Market Flow determination, the market area may be the entire RTO footprint, as in the following illustration, or it may be a subset of the RTO region, such as a pre- integration NERC-recognized Control Area, as necessary to ensure accurate determinations and consistency with pre-integration flow determinations. In the latter case, the total market flow of an RTO shall be the sum of the flows from and between such market areas. 1 “ Parallel Flow Calculation Procedure Reference Document,” NERC Operating Manual. 11 Feb, 2003. <xxxx://xxx.xxxx.xxx/~oc/opermanl.html> The Market Flow calculation differs from the Per Generator Method in the following ways: • The contribution from all market area generators will be taken into account. • In the Per Generator Method, only generators having a GLDF greater than 5% are included in the calculation. Additionally, generators are included only when the sum of the maximum generating capacity at a bus is greater than 20 MW. The Market Flow calculations will use all flows, in both directions, down to a 5% threshold for the IDC to assign TLR curtailments and down to a 0% threshold for information purposes. Forward flows and reverse flows are determined as discrete values. • The contribution of all market area generators is based on the present output level of each individual unit. • The contribution of the market area load is based on the present demand at each individual bus. By expanding on the Per Generator Method, the Market Flow calculation evolves into a methodology very similar to the “Per Generator Method,” while providing granularity on the order of the most granular method developed by the IDC Granularity Task Force. Directional flows are required for this process to ensure a Market-Based Operating Entity can effectively select the most effective generation pattern to control the flows on both internal and external constraints, but are considered as distinct directional flows to ensure comparability with existing NERC and/or NAESB TLR processes. Under this process, the use of real-time values in concert with the Market Flow calculation effectively implements one of the more accurate and detailed methods of the six IDC Granularity Options considered by the NERC IDC Granularity Task Force. Units assigned to serve a market area’s load do not need to reside within the market area’s footprint to be considered in the Market Flow calculation. However, units outside of the market area will not be considered when those units will have tags associated with their transfers. Additionally, there may be situations where the participation of a generator in the market may be less than 100% (e.g., a unit jointly owned in which not all of the owners are participating in the market). Such situations will need to be recognized and accounted for in the markets’ operations. Finally, imports into or exports out of the market area, and tagged grandfathered transactions within the market area, must be properly accounted for in the determination of Market Flows. When the actual generation of the market area exceeds the total load of that area, the market area is exporting energy. These exports are tagged transactions that must be accounted for in the Market Flow calculation. This will be accomplished within the calculation by including a new term that offsets the MW output of the marginal unit(s) by the amount of the net market export. This ensures that the Market Flow calculation is measuring only the effect of internal generation serving internal load. When the actual generation of the market area is less than the total load of the market area, that area is importing energy. These imports are tagged transactions that are inherently not included in the determination of Market Flows, as “Market Flows” are a measure of internal generation serving internal load. The processes currently within IDC will address the counting of these transactions. Below is a summary of the calculations discussed above. For a specified Flowgate, the Market Flow impact of a market area is given as: where,

Market Flow Determination. The determination of Market Flows builds on the “Per Generator” methodologies that were developed by the NERC Parallel Flow Task Force. The “Per Generator Method Without Counter Flow” was presented to and approved by both the NERC Security Coordinator Subcommittee (SCS) and the Market Interface Committee (MIC). 1 This methodology is presently used in the IDC to determine NNL contributions. Similar to the Per Generator Method, the Market Flow calculation method is based on Generator Shift Factors (GSFs) of a market area’s assigned generation and the Load Shift Factors (LSFs) of its load on a specific Flowgate, relative to a system swing bus. The GSFs are calculated from a single bus location in the base case (e.g. the terminal bus of each generator) while the LSFs are defined as a general scaling of the market area’s load. The Generator to Load Distribution Factor (GLDF) is determined through superposition by subtracting the LSF from the GSF. The determination of the Market Flow contribution of a unit to a specific Flowgate is the product of the generator’s GLDF multiplied by the actual output (in megawatts) of that generator. The total Market Flow on a specific Flowgate is calculated in each direction; forward Market Flows is the sum of the positive Market Flow contributions of each generator within the market area, while reverse Market Flow is the sum of the negative Market Flow contributions of each generator within the market area. For purposes of the Market Flow determination, the market area may be either: (1) the entire RTO footprint, as in the following illustration, ; or it may be (2) a subset of the RTO region, such as a pre- integration NERC-recognized Control Area, as necessary to ensure accurate determinations and consistency with pre-integration flow determinations. In Each Market-Based Operating Entity shall choose only one of these two options to calculate its Market Flows. With regard to the latter casesecond option, the total market flow Market Flow of an RTO shall be the sum of the flows from and between such market areas. 1 “ Parallel Flow Calculation Procedure Reference Document,” NERC Operating Manual. 11 Feb, 2003. <xxxx://xxx.xxxx.xxx/~oc/opermanl.html< https://xxx.xxxx.xxx/comm/OC/Operating%20Manual%20DL/Operating_Manual_20160809.pdf#search=NERC% 20Operating%20Manual > The Market Flow calculation differs from the Per Generator Method in the following ways: • The contribution from all market area generators will be taken into account. • • In the Per Generator Method, only generators having a GLDF greater than 5% or greater are included in the calculation. Additionally, generators are included only when the sum of the maximum generating capacity at a bus is greater than 20 MW. The Market Flow calculations will use all flows, in both directions, to calculate a Market Flow down to a 5% threshold for the IDC and to assign TLR curtailments and calculate a Market Flow down to a 0% threshold for information purposesthreshold. Forward flows and reverse flows are determined as discrete values. • The contribution of all market area generators is based on the present output level of each individual unit. • The contribution of the market area load is based on the present demand at each individual bus. By expanding on the Per Generator Method, the Market Flow calculation evolves into a methodology very similar to the “Per Generator Method,” while providing granularity on the order of the most granular method developed by the IDC Granularity Task Force. Directional flows are required for this process to ensure a Market-Based Operating Entity can effectively select the most effective generation pattern to control the flows on both internal and external constraints, but are considered as distinct directional flows to ensure comparability with existing NERC and/or NAESB TLR processes. Under this process, the use of real-time values in concert with the Market Flow calculation effectively implements one of the more accurate and detailed methods of the six IDC Granularity Options considered by the NERC IDC Granularity Task Force. Units assigned to serve a market area’s load do not need to reside within the market area’s footprint to be considered in the Market Flow calculation. However, units outside of the market area will not be considered when those units will have tags associated with their transfers. Additionally, there may be situations where the participation of a generator in the market may be less than 100% (e.g., a unit jointly owned in which not all of the owners are participating in the market). Such situations will need to be recognized and accounted for in the markets’ operations. Finally, imports into or exports out of the market area, and tagged grandfathered transactions within the market area, must be properly accounted for in the determination of Market Flows. When the actual generation of the market area exceeds the total load of that area, the market area is exporting energy. These exports are tagged transactions that must be accounted for in the Market Flow calculation. This will be accomplished within the calculation by including a new term that offsets the MW output of the marginal unit(s) by the amount of the net market export. This ensures that the Market Flow calculation is measuring only the effect of internal generation serving internal load. When the actual generation of the market area is less than the total load of the market area, that area is importing energy. These imports are tagged transactions that are inherently not included in the determination of Market Flows, as “Market Flows” are a measure of internal generation serving internal load. The processes currently within IDC will address the counting of these transactions. Below is a summary of the calculations discussed above. For a specified Flowgate, the Market Flow impact of a market area is given as: where,.

Market Flow Determination. ‌ The determination of Market Flows builds on the “Per Generator” methodologies that were developed by the NERC Parallel Flow Task Force. The “Per Generator Method Without Counter Flow” was presented to and approved by both the NERC Security Coordinator Subcommittee (SCS) and the Market Interface Committee (MIC). 1 This methodology is presently used in the IDC to determine NNL contributions. Similar to the Per Generator Method, the Market Flow calculation method is based on Generator Shift Factors (GSFs) of a market area’s assigned generation and the Load Shift Factors (LSFs) of its load on a specific Flowgate, relative to a system swing bus. The GSFs are calculated from a single bus location in the base case (e.g. the terminal bus of each generator) while the LSFs are defined as a general scaling of the market area’s load. The Generator to Load Distribution Factor (GLDF) is determined through superposition by subtracting the LSF from the GSF. The determination of the Market Flow contribution of a unit to a specific Flowgate is the product of the generator’s GLDF multiplied by the actual output (in megawatts) of that generator. The total Market Flow on a specific Flowgate is calculated in each direction; forward Market Flows is the sum of the positive Market Flow contributions of each generator within the market area, while reverse Market Flow is the sum of the negative Market Flow contributions of each generator within the market area. For purposes of the Market Flow determination, the market area may be the entire RTO footprint, as in the following illustration, or it may be a subset of the RTO region, such as a pre- integration NERC-recognized Control Area, as necessary to ensure accurate determinations and consistency with pre-integration flow determinations. In the latter case, the total market flow of an RTO shall be the sum of the flows from and between such market areas. 1 “ Parallel Flow Calculation Procedure Reference Document,” NERC Operating Manual. 11 Feb, 2003. <xxxx://xxx.xxxx.xxx/~oc/opermanl.html> The Market Flow calculation differs from the Per Generator Method in the following ways: • The contribution from all market area generators will be taken into account. • In the Per Generator Method, only generators having a GLDF greater than 5% are included in the calculation. Additionally, generators are included only when the sum of the maximum generating capacity at a bus is greater than 20 MW. The Market Flow calculations will use all flows, in both directions, down to a 5% threshold for the IDC to assign TLR curtailments and down to a 0% threshold for information purposes. Forward flows and reverse flows are determined as discrete values. • The contribution of all market area generators is based on the present output level of each individual unit. • The contribution of the market area load is based on the present demand at each individual bus. By expanding on the Per Generator Method, the Market Flow calculation evolves into a methodology very similar to the “Per Generator Method,” while providing granularity on the order of the most granular method developed by the IDC Granularity Task Force. Directional flows are required for this process to ensure a Market-Based Operating Entity can effectively select the most effective generation pattern to control the flows on both internal and external constraints, but are considered as distinct directional flows to ensure comparability with existing NERC and/or NAESB TLR processes. Under this process, the use of real-time values in concert with the Market Flow calculation effectively implements one of the more accurate and detailed methods of the six IDC Granularity Options considered by the NERC IDC Granularity Task Force. Units assigned to serve a market area’s load do not need to reside within the market area’s footprint to be considered in the Market Flow calculation. However, units outside of the market area will not be considered when those units will have tags associated with their transfers. Additionally, there may be situations where the participation of a generator in the market may be less than 100% (e.g., a unit jointly owned in which not all of the owners are participating in the market). Such situations will need to be recognized and accounted for in the markets’ operations. Finally, imports into or exports out of the market area, and tagged grandfathered transactions within the market area, must be properly accounted for in the determination of Market Flows. When the actual generation of the market area exceeds the total load of that area, the market area is exporting energy. These exports are tagged transactions that must be accounted for in the Market Flow calculation. This will be accomplished within the calculation by including a new term that offsets the MW output of the marginal unit(s) by the amount of the net market export. This ensures that the Market Flow calculation is measuring only the effect of internal generation serving internal load. When the actual generation of the market area is less than the total load of the market area, that area is importing energy. These imports are tagged transactions that are inherently not included in the determination of Market Flows, as “Market Flows” are a measure of internal generation serving internal load. The processes currently within IDC will address the counting of these transactions. Below is a summary of the calculations discussed above. For a specified Flowgate, the Market Flow impact of a market area is given as: where,.

Market Flow Determination. The determination of Market Flows builds on the “Per Generator” methodologies that were developed by the NERC Parallel Flow Task Force. The “Per Generator Method Without Counter Flow” was presented to and approved by both the NERC Security Coordinator Subcommittee (SCS) and the Market Interface Committee (MIC). 1 This methodology is presently used in the IDC to determine NNL contributions. Similar to the Per Generator Method, the Market Flow calculation method is based on Generator Shift Factors (GSFs) of a market area’s assigned generation and the Load Shift Factors (LSFs) of its load on a specific Flowgate, relative to a system swing bus. The GSFs are calculated from a single bus location in the base case (e.g. the terminal bus of each generator) while the LSFs are defined as a general scaling of the market area’s load. The Generator to Load Distribution Factor (GLDF) is determined through superposition by subtracting the LSF from the GSF. The determination of the Market Flow contribution of a unit to a specific Flowgate is the product of the generator’s GLDF multiplied by the actual output (in megawatts) of that generator. The total Market Flow on a specific Flowgate is calculated in each direction; forward Market Flows is the sum of the positive Market Flow contributions of each generator within the market area, while reverse Market Flow is the sum of the negative Market Flow contributions of each generator within the market area. For purposes of the Market Flow determination, the market area may be the entire RTO footprint, as in the following illustration, or it may be a subset of the RTO region, such as a pre- integration NERC-recognized Control Area, as necessary to ensure accurate determinations and consistency with pre-integration flow determinations. In the latter case, the total market flow of an RTO shall be the sum of the flows from and between such market areas. 1 “ “Parallel Flow Calculation Procedure Reference Document,” NERC Operating Manual. 11 Feb, 2003. <xxxx://xxx.xxxx.xxx/~oc/opermanl.html> The Market Flow calculation differs from the Per Generator Method in the following ways: • The contribution from all market area generators will be taken into account. • In the Per Generator Method, only generators having a GLDF greater than 5% are included in the calculation. Additionally, generators are included only when the sum of the maximum generating capacity at a bus is greater than 20 MW. The Market Flow calculations will use all flows, in both directions, down to a 5% threshold for the IDC to assign TLR curtailments and down to a 0% threshold for information purposes. Forward flows and reverse flows are determined as discrete values. • The contribution of all market area generators is based on the present output level of each individual unit. • The contribution of the market area load is based on the present demand at each individual bus. By expanding on the Per Generator Method, the Market Flow calculation evolves into a methodology very similar to the “Per Generator Method,” while providing granularity on the order of the most granular method developed by the IDC Granularity Task Force. Directional flows are required for this process to ensure a Market-Based Operating Entity can effectively select the most effective generation pattern to control the flows on both internal and external constraints, but are considered as distinct directional flows to ensure comparability with existing NERC and/or NAESB TLR processes. Under this process, the use of real-time values in concert with the Market Flow calculation effectively implements one of the more accurate and detailed methods of the six IDC Granularity Options considered by the NERC IDC Granularity Task Force. Units assigned to serve a market area’s load do not need to reside within the market area’s footprint to be considered in the Market Flow calculation. However, units outside of the market area will not be considered when those units will have tags associated with their transfers. Additionally, there may be situations where the participation of a generator in the market may be less than 100% (e.g., a unit jointly owned in which not all of the owners are participating in the market). Such situations will need to be recognized and accounted for in the markets’ operations. Finally, imports into or exports out of the market area, and tagged grandfathered transactions within the market area, must be properly accounted for in the determination of Market Flows. When the actual generation of the market area exceeds the total load of that area, the market area is exporting energy. These exports are tagged transactions that must be accounted for in the Market Flow calculation. This will be accomplished within the calculation by including a new term that offsets the MW output of the marginal unit(s) by the amount of the net market export. This ensures that the Market Flow calculation is measuring only the effect of internal generation serving internal load. When the actual generation of the market area is less than the total load of the market area, that area is importing energy. These imports are tagged transactions that are inherently not included in the determination of Market Flows, as “Market Flows” are a measure of internal generation serving internal load. The processes currently within IDC will address the counting of these transactions. Below is a summary of the calculations discussed above. For a specified Flowgate, the Market Flow impact of a market area is given as: where,

Market Flow Determination. The determination of Market Flows builds on the “Per Generator” methodologies that were developed by the NERC Parallel Flow Task Force. The “Per Generator Method Without Counter Flow” was presented to and approved by both the NERC Security Coordinator Subcommittee (SCS) and the Market Interface Committee (MIC). 1 This methodology is presently used in the IDC to determine NNL contributions. Similar to the Per Generator Method, the Market Flow calculation method is based on Generator Shift Factors (GSFs) of a market area’s assigned generation and the Load Shift Factors (LSFs) of its load on a specific Flowgate, relative to a system swing bus. The GSFs are calculated from a single bus location in the base case (e.g. the terminal bus of each generator) while the LSFs are defined as a general scaling of the market area’s load. The Generator to Load Distribution Factor (GLDF) is determined through superposition by subtracting the LSF from the GSF. The determination of the Market Flow contribution of a unit to a specific Flowgate is the product of the generator’s GLDF multiplied by the actual output (in megawatts) of that generator. The total Market Flow on a specific Flowgate is calculated in each direction; forward Market Flows is the sum of the positive Market Flow contributions of each generator within the market area, while reverse Market Flow is the sum of the negative Market Flow contributions of each generator within the market area. For purposes of the Market Flow determination, the market area may be the entire RTO footprint, as in the following illustration, or it may be a subset of the RTO region, such as a pre- integration NERC-recognized Control Area, as necessary to ensure accurate determinations and consistency with pre-integration flow determinations. In the latter case, the total market flow of an RTO shall be the sum of the flows from and between such market areas. 1 “ “Parallel Flow Calculation Procedure Reference Document,” NERC Operating Manual. 11 Feb, 2003. <xxxx://xxx.xxxx.xxx/~oc/opermanl.html> The Market Flow calculation differs from the Per Generator Method in the following ways: • The contribution from all market area generators will be taken into account. • In the Per Generator Method, only generators having a GLDF greater than 5% are included in the calculation. Additionally, generators are included only when the sum of the maximum generating capacity at a bus is greater than 20 MW. The Market Flow calculations will use all flows, in both directions, down to a 5% threshold, unless required by NERC to consider impacts below 5% to preserve reliability. Notice of any such change will be posted on the respective OASIS. (This Market Flow threshold for is subject to the IDC to assign outcome of the NERC approved TLR curtailments procedures 12 month field test and down to a 0% threshold for information purposes. the specific terms and conditions and effective date on which each Market-Based Operating Entity will or has started the 12 month field test.) Forward flows and reverse flows are determined as discrete values. • The contribution of all market area generators is based on the present output level of each individual unit. • The contribution of the market area load is based on the present demand at each individual bus. By expanding on the Per Generator Method, the Market Flow calculation evolves into a methodology very similar to the “Per Generator Method,” while providing granularity on the order of the most granular method developed by the IDC Granularity Task Force. Directional flows are required for this process to ensure a Market-Based Operating Entity can effectively select the most effective generation pattern to control the flows on both internal and external constraints, but are considered as distinct directional flows to ensure comparability with existing NERC and/or NAESB TLR processes. Under this process, the use of real-time values in concert with the Market Flow calculation effectively implements one of the more accurate and detailed methods of the six IDC Granularity Options considered by the NERC IDC Granularity Task Force. Units assigned to serve a market area’s load do not need to reside within the market area’s footprint to be considered in the Market Flow calculation. However, units outside of the market area will not be considered when those units will have tags associated with their transfers. Additionally, there may be situations where the participation of a generator in the market may be less than 100% (e.g., a unit jointly owned in which not all of the owners are participating in the market). Such situations will need to be recognized and accounted for in the markets’ operations. Finally, imports into or exports out of the market area, and tagged grandfathered transactions within the market area, must be properly accounted for in the determination of Market Flows. When the actual generation of the market area exceeds the total load of that area, the market area is exporting energy. These exports are tagged transactions that must be accounted for in the Market Flow calculation. This will be accomplished within the calculation by including a new term that offsets the MW output of the marginal unit(s) by the amount of the net market export. This ensures that the Market Flow calculation is measuring only the effect of internal generation serving internal load. When the actual generation of the market area is less than the total load of the market area, that area is importing energy. These imports are tagged transactions that are inherently not included in the determination of Market Flows, as “Market Flows” are a measure of internal generation serving internal load. The processes currently within IDC will address the counting of these transactions. Below is a summary of the calculations discussed above. For a specified Flowgate, the Market Flow impact of a market area is given as: where,