PCI on the Move in MISO: Implements Extended Locational Marginal Pricing (ELMP) for Market Participants
March 23, 2015 – Norman, OK – Earlier this month, PCI (Power Costs, Inc.) successfully upgraded its Midcontinent Independent System Operator (MISO) clients with functionality in the PCI Generation Supply Management System (GSMS) to accommodate changes associated with MISO’s Extended Locational Marginal Pricing (ELMP).
MISO’s ELMP includes a number of benefits for market participants by presenting a more stable and dependable cost of energy by utilizing commitment costs for fast-start resources and emergency demand response. ELMP is calculated “after-the-fact,” which allows it to better reflect a true cost while also helping to minimize uplift charges. Its implementation fulfills the following:
- Inclusion of Fast Start Resource costs (Start-Up, No Load/Incremental Energy, etc.) to set the energy price
- Minimization of price spikes during shortages
- Reduction of Uplift Charges
To align with MISO’s move to ELMP, PCI has enabled several functionality upgrades in its GSMS, such as:
- Ability to download, store, and display ELMPs, as well as the preliminary Ex-Ante LMPs
- Use of ELMPs to perform shadow settlement
- Availability of the ELMP and Ex-Ante LMP in the PCI Data Warehouse for reporting
- Use of ELMPs in PCI Business Intelligence tools including Settlement Analyzer and P&L Analyzer
PCI’s MISO Product Manager Jeremy Pober notes, “PCI has worked side-by-side with our large customer base in MISO to implement the changes required for ELMP. As with any market initiative, the key to a successful market change that involves a software upgrade is having a very good understanding of how the changes will impact business workflows. PCI’s experience has shown these types of initiatives require software designed in a flexible manner to allow market changes to be delivered quickly, and allow users the flexibility to define when the changes should take effect.”
The PCI GSMS is used to automate and streamline all front and back office (bid-to-bill) workflows for MISO (and other) market participants including all bidding, settlement and reporting/business intelligence requirements.
About Power Costs, Inc. (PCI)
PCI is the leading provider of generation supply management and optimization software to energy focused companies. Founded in 1992 by Dr. Fred Lee, PCI continues to develop power industry software solutions, superior customer support and value-added services for top-tier energy customers. More than half of all power generation in the United States use PCI software solutions. PCI is a privately held company based in Norman, Oklahoma with offices in Houston, Texas and Raleigh, North Carolina. To learn more about PCI, please visit www.powercosts.com.