The TCC Auction - NYISO · TCC Auction Rules, unless TCCs are offered for sale with a POW on Long Island. Individual Bid: Reasons for Rejection •Bidding Rules for using the HQ Proxy

The TCC Auction

Aaron Westcott

Important Reminders

•Please mute your phone until you ready to ask a question.

•Please no cellular phones.

•Please do not use the hold button (The music will be a distraction)

TCC Auction

•Reference Materials•Registration•Purchase/Sell Agreement Submittal•Offer(Sales) Form•Bid form•Unbundling of TCCs•Restricted PTIDs•Posted Results

Reference Materials•“Rules, Procedures & Guidelines For the Initial Auction and Reconfiguration Auctions of TCCs”

http://www.nyiso.com/markets/tcc_auctions/2002_summer.html

•NY ISO Tariff & OATThttp://www.nyiso.com/services/oatt.html

Registration: Tariffs

•ISO Market Administration And Control Area Services TariffParticipate in New York Control Area Markets

•Open Access Transmission TariffHave access to New York Control Area transmission system

•Both Tariffs can be found at: http://www.nyiso.com/services/oatt.html

•Both Tariffs must be signed to participate in the TCC auctions

Registration: Credit PolicyCompanies with BBB or better credit rating from S&P or Baa2 credit rating from Moody’s receive unlimited credit.

Otherwise,

Must provide credit acceptable to the NYISO:Cash (Always good)ILOC (Irrevocable Letter of Credit)Surety BondDomestic Parent Company Guarantee

Registration: Credit PolicyPositive TCC Bidders Where Collateral is Required

•Bidders can only bid up to their collateral amount

EX. Company X provides $1 million in collateral, company X can now bid for $1 million worth of TCCs.

•Awardees must provide an equal amount of collateral above and beyond what was paid for the TCCs for the duration of the TCC.

EX Company X is awarded $600K of TCCs, company X must pay $600K and keep $600K in collateral with the NYISO.

Registration: Credit PolicyNegative TCC Bidders Where Collateral is Required

Collateral is not required for the bidding process.

If a TCC contract is awarded then collateral is required for theamount that the contract was awarded for.

EX. Company Y bids for $1 million worth of negative TCCSCompany Y is awarded $1.1 million in Negative TCCsCompany Y must now provide $1 million in collateral

TCC Payment

PLEASE NOTE: Regardless of the type of TCC (Positive or Negative), TCCs must be paid for by the end of the auction, within one week.

Purchase/Sell Agreements: Contacts

•Each seasonal auction has a Purchase/Sell Agreement that must be signed before a Market Participant may take part in the auction.

•The individual must have the legal authority to execute contracts on behalf of the the Market Participant.

•Officers usually have this capability but other can as well based on a grant of “power of attorney”. In these cases, we will require a copy of the document.

Purchase/Sell Agreements: Auctions

Each agreement covers the capability period auction and the monthly reconfiguration auctions.

Purchase/Sell Agreements: Submitting

•All signed Purchase/Sell agreements must “…be received by the NYISO via an overnight mail service or a delivery service requiring the signature of the addressee, delivered to the NYISO…”

•The Purchase/Sell agreement must be received according to the schedule for the auction in question.

Purchase/Sell Agreements: Reasons for Rejection

1. All fields and information must be filled in.

2. If the language in the contract is changed, the contract will be rejected.


All fields and information must be filled in – Page 1:


NOTE: Same structure for the Sale Agreement.





PLEASE PRINT COMPLETE NAME HERE PLEASE PRINT COMPLETE NAME HERE

PLEASE SIGN NAME HERE PLEASE SIGN NAME HERE


2. If language in the contract is changed the contract will be rejected.

Hopefully, this is self explanatory. Don’t change the contract.

Offer/Bid Form: Location

The offer/bid(sales/purchase) forms are located on the website:http://www.nyiso.com/markets/tcc_auctions/<yyyy_season>.html

EX. http://www.nyiso.com/markets/tcc_auctions/2002_summer.html

Or you can go this way:

NYISO.COM“Markets”-”Transmission Congestion Contracts – TCC” – “Season”

Offer Form: How to Complete







Offer Form: Reasons for Rejection

•The NYISO has not received a “Sale Agreement" for this Auction.

•The Spreadsheet was not password protected.•To password protect file (not workbook or worksheet)•Open File•Goto File menu and select Save As•Click on Options•In the "Password To Open" box , enter designated password•re-enter password to proceed•Click OK•Click Save.

Offer Form: Reasons for Rejection

•The appropriate Form was not used.

• Blank Information fields (i.e. name, date, time, contact, company, address, email)

•Offers were not consecutively numbered.

•Two Offer Forms were received with the identical time & date stamp. Both are invalidated.

•Incorrect Registrant Name - The information provided in the "Registrant Name" area should be exactly the information provided to your company by the NYISO.

Individual Offer: Reasons for Rejection

•The (Optional) Minimum Offer Price value must be to the nearest cent in "Column F" of the Offer form.

•The number of TCCs must be an integer and less than or equal to the TCCs held.•POI & POW must be as per the Contract.

•Submitter must be the Primary Holder.

•Period of sale must be within parameters of the contract.

Offer Form: Submittal Times

Offer forms are submitted according to the schedule provided in Attachment C of the Rules and Procedures for TCC auctions.

“PLEASE SUBMIT YOUR OFFERS EARLY”

[email protected]

Bid Form: How to Complete



REMINDER:DON’T CHANGEANYTHING IN THIS COLUMN





Bid Form: Reasons for Rejection•The NYISO has not received a "Purchase Agreement" for this Auction.

•The Spreadsheet was not password protected.•To password protect file (not workbook or worksheet)•Open File•Goto File menu and select Save As•Click on Options•In the "Password To Open" box , enter designated password•re-enter password to proceed•Click OK•Click Save.

•The appropriate Bid Form was not used.

Bid Form: Reasons for Rejection

•Blank Information fields (i.e. name, date, time, contact, company, address, email)•Bids were not consecutively numbered.

•Two Bid Forms were received with the identical time & date stamp. Both are invalidated.

•Incorrect Registrant Name - The information provided in the "Registrant Name" area should be exactly the information provided to your company by the NYISO.

•The Bid Price value must be to the nearest cent in "Column C" of the Bid form (not just formatted to 2 decimal places).

Bid Form: Reasons for Rejection•The bid form was altered by inserting a value in a "Column D" cell. The formula in the "Total Price ($)" column was overwritten.

•The total bid sum in cell D-Total does not reflect the total of column D.

Bid Form: Reasons for Rejection

•The total of bids exceeded your TCC Auction maximum credit limit with the NYISO.

•Maximum of 500 bids.

Individual Bid: Reasons for Rejection

•Multiple bids with the same POI/POW pair and Bid Price.

•Number of TCCs must be an integer.

•POI & POW must be as listed in Attachment D.


•Bidding is prohibited between Kenisco-Dunwoodie per the Auction Rules, Attachment F

•Bidding to, from or on Long Island is presently prohibited per the TCC Auction Rules, unless TCCs are offered for sale with a POW on Long Island.


•Bidding Rules for using the HQ Proxy Bus is restricted per the Auction Rules, Attachment G .

Hydro Quebec•PTID 61844 must be used for the POI or POW (as appropriate) for a bid to purchase TCCs from the HQ Proxy bus to an internal New York bus or zone and from an internal New York bus or zone to the HQ Proxy bus.

•PTID 23651 must be used for the POI or POW (as appropriate) for a bid to purchase TCCs from the HQ Proxy bus to another external proxy bus (e.g. NE Proxy, OH Proxy, PJM Proxy) and from another external proxy bus to the HQ Proxy bus.

Hydro Quebec

6184423651HQ

NYCA

1500MW

<= 1200MW

OtherControl Area


•Bidding is prohibited within Prohibited Groups of Points of Injection and Withdrawal per the Auction Rules, Attachment E.

Restricted PTID

Attachment E of the Rules, Procedures and Guidelines document contains a list of prohibited POI/POWs.

These PTIDS are on the same bus.

Offers to buy and sell containing PTIDs within a prohibitive group from Attachment E will be rejected.

Attachment E

Bid Form: Submittal Times

Bid forms are submitted according to the schedule provided in Attachment C of the Rules and Procedures for TCC auctions

“PLEASE SUBMIT YOUR BIDS EARLY”

[email protected]

Unbundling of TCCs: Example

Technical Bulletin #57

Unbundling of TCCs•If the buyer does not want to unbundle their TCCs, then the MP should contact the NYISO by sending a message to [email protected].

•Notification must be done prior to the auction, otherwise the NYISO will automatically unbundle the TCC final award.

•If a bidder is planning on holding the TCC for its duration then unbundling does not matter.

•Please Note: Rebundling not allowed

•Technical Bulleting #57 covers this material and provides more examples.

Posted Results: Binding Constraints



Posted Results: Nodal PricesPTID Node Name Zone Clearing Price

$/TTC Period

Posted Results: Awards

Nodal POI – Nodal POW = Award Price

Posted Results: Relationships

Nodal POI – Nodal POW = Award Price 702.73 – 13954.52 = (13251.79)

PTID Node Name Zone Clearing Price$/TTC Period

Posted Results: Transmission Contracts Summary

http://www.nyiso.com/markets/tcc-info.htmlUnder General TCC Auction Information

Posted Results: Monthly Congestion Report

Posted Results: Bid/Offer Information

http://mis.nyiso.com

Summary

•Registration•Purchase/Sell Agreement Submittal•Offer Form•Bid form•Unbundling of TCCs•Restricted PTIDs•Posted Results

Aaron Westcott518 356 [email protected]

Documents

The TCC Auction - NYISO · TCC Auction Rules, unless TCCs are offered for sale with a POW on Long Island. Individual Bid: Reasons for Rejection •Bidding Rules for using the HQ Proxy