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On October 12 the Ontario electric grid officially began using its new Day Ahead system, known as EDACP, short for Enhanced Day Ahead Commitment Process. Intended to improve market efficiency and allow market participants to plan their operations a day ahead, EDACP has been described as “the most significant improvement to the electricity market since it opened in May 2002.”
The enhancements to the IESO’s Day Ahead Commitment Process emerged as a recommendation out of stakeholder discussions on Day Ahead Mechanisms held in 2007 and 2008. The EDAC project was approved by the IESO Board in early 2009, the detailed design phase was completed in early 2010, followed by system implementation and then market trials over the spring and summer of 2011.
The IESO says it “will bring about efficiencies through the advanced scheduling and commitment of resources which are expected to reduce costs to consumers by up to $17 million per year.” The enhanced Day Ahead Commitment Process changes the original process, put in place in 2006, by factoring start-up and speed no load costs into the comparison of bids and offers to determine dispatch schedules for participants. (“Speed no load costs” are the fixed costs of running synchronized at or below minimum load.) The new process provides hourly schedules for generators, dispatchable loads and participating traders over a 24-hour period in a way that is intended to ensure the “least cost over the entire period.” Previously the market systems looked at each hour in isolation. In addition the enhanced process now allows traders to submit exports and linked wheeling transactions for evaluation with other participants a day ahead.
Kim Warren, the Chief Operating Officer of the IESO said, “The enhanced Day Ahead Commitment Process is a real success story for the IESO, market participants and consumers in general. The project has been delivered on time and on budget and we received tremendous support from market participants. We appreciate their efforts in working with us on this project.”
On September 9, the IESO Board approved market rule amendment MR-00382: EDAC Market Rules True-up Package #2. This amendment introduces a fourth set of market rule amendments required to implement the EDAC process design approved by the IESO Board in February 2009 to:
• Address additional design detail changes to approved amendments MR-00348: EDAC – 24 Hour Optimization and 3-part Offers; MR-00349: EDAC – Settlement Guarantees; and MR-00375: EDAC – Market Rules True-Up Package; and
• Generally provide greater clarity and consistency throughout previously approved EDAC market rule amendments.
IPPSO FACTO expects to provide more detailed reports on the success of the new system in a future issue.