1. Briefing on 2017 CAISO Policy Initiatives Roadmap
Presentation to WECC Market Interface Committee
March 22, 2017
Jim Price, Senior Advisor, Market & Integration Studies, CAISO

2. Stakeholder Initiatives Roadmap process includes stakeholder participation
ISO receives potential initiatives through stakeholder input, among other sources (ISO analysis, FERC decisions, etc.)
Stakeholder web conferences 11/3/2016 & 12/22/2016
Stakeholder Initiatives Catalog process updates descriptions, categorization and status of all identified policy initiatives
Revised draft catalog published 11/4/2016
Policy Initiatives Roadmap ranks discretionary initiatives
Briefing to EIM Governing Body 2/1/2017 & ISO Board of Governors 2/16/2017
Final documents (posted 3/6/2017) available:

3. Discretionary initiatives are ranked using a high level cost/benefit analysis
Criteria
High (10)
Medium (7)
Low (3)
None (0)
Benefit
Grid Reliability
Significant improvement
Moderate improvement
Minimal improvement
No improvement
Improving Overall Market Efficiency
Desired by Stakeholders
Universally desired by stakeholders
Desired by majority of stakeholders
Desired by a small subset of stakeholders
No apparent desire
Feasibility
Market Participant Implementation Impact ($ and resources)
No impact
Minimal impact
Moderate impact
Significant impact
ISO Implementation Impact ($ and resources)

4. Ranking results prioritize the top discretionary initiatives
Grid reliability
Improving overall market efficiency
Desired by stakeholders
Market participant implementation impact
ISO implementation impact
Total score
Real-time market enhancement 7 3 31
Management of EIM imbalance settlement for bilateral schedule changes
Risk-of-retirement
process enhancement 10 29
CRR auction efficiency 28
Donation by third
party for transmission
capacity available for
EIM transfers 27
EIM wheeling
charge (narrow issue) 23

5. 2017 Policy Initiative Roadmap shows ongoing, non-discretionary, and 6 discretionary initiatives (and some in initiative analysis phase)

6. Policy Initiatives Roadmap and Stakeholder Initiatives Catalog provide details of potential enhancements
Real-time market enhancement: Enable 5-minute dispatch to perform functions of 15-minute unit commitment, ancillary services procurement, local market power mitigation, and shorten lead time for intertie scheduling
Management of EIM imbalance settlement for bilateral schedule changes: Following Oct FERC technical conference on EIM intertie bidding, use wheel-through function to manage bilateral schedule changes, with bid price for schedule change
Risk-of-retirement process enhancement: Extend current “risk-of-retirement” backstop procurement beyond single year to keep capacity in operation for future reliability
CRR auction efficiency: Address persistent shortfall of CRR auction revenue relative to payments to CRR purchasers, potentially by replacing auction with market for sale of CRRs
Donation by third party for transmission capacity available for EIM transfers: Extend allocation of congestion revenue among EIM entities to compensate third parties who would make transmission available to support EIM transfers
EIM wheeling charge: Address narrow issue of compensation for wheels between BAAs within EIM footprint