Common use of Overview of the Market-to-Market Coordination Process Clause in Contracts

Overview of the Market-to-Market Coordination Process. The fundamental philosophy of the Market-to-Market transmission congestion coordination process is to allow any transmission constraints that are significantly impacted by generation dispatch changes in both markets to be jointly managed in the security-constrained economic dispatch models of both Parties. This joint management of transmission constraints near the market borders will provide the most efficient and least costly transmission congestion management and will also provide coordinated pricing at the market boundaries. This Market-to-Market coordination process should build upon the Parties’ Market to Non-market coordination process as a starting point. Before the implementation of Phase 2, the Parties will have agreed upon the inter-regional coordination process between a market region and a non-market region (i.e. a market to non-market interface). The set of transmission flowgates in each market that can be significantly impacted by the economic dispatch of generation serving load in the adjacent market will be identified by the Parties. These flowgates will then be monitored to measure the impact of market flows and loop flows from adjacent regions. The procedures developed by the Parties will provide a framework for calculating the resulting powerflow impacts resulting from the market-based economic dispatch in one region on the transmission facilities in an adjacent region and vice versa. In addition, the Parties will have reached agreement on how the market flow impacts will be managed on an interregional basis within the existing NERC IDC to enhance the effectiveness of the NERC interregional congestion management process. Lastly, the Parties agree that flow entitlement for Network and Firm transmission utilization in one region has an impact on the transmission facilities in an adjacent region. The Market-to-Market coordination process builds on the work already completed as described above because of the continuing requirement to coordinate with adjacent regions even after the Parties’ markets are implemented.