By Tom Kleckner

SPP’s Markets and Operations Policy Committee will vote this week on a recommendation to move the deadline for day-ahead market offers up 90 minutes to 9:30 a.m. CT.

The proposal, which has cleared four lower stakeholder groups, would have day-ahead results posted at 2 p.m. CT, up from 4 p.m. It also shortens the reoffer period to 45 minutes, with reliability unit commitment (RUC) offers due at 2:45 and results posted by 5:15.

The changes to SPP’s operating tariff are intended to comply with the Federal Energy Regulatory Commission’s Order 809, which moved the timely nomination cycle deadline for gas to 1 p.m. CT from 11:30 a.m. and added a third intraday nomination cycle. The commission ordered RTOs to adjust the posting of their day-ahead energy market and reliability unit commitment process results “sufficiently in advance” of the revised gas cycles, or explain why it is not suitable for their markets. (See SPP Trying to ‘Balance the Risk’ on Gas-Electric Schedules.)

‘Incremental’ Improvement

The revised timeline would not provide day-ahead market results before the 1 p.m. CT nomination deadline, but it would provide 30 minutes before the Intraday 2 nomination. RUC results would be available 45 minutes before the 6 p.m. evening gas nomination.

The proposal has already been endorsed by majorities in the Gas Electric Coordination Task Force (4-2 with two abstentions); the Market Working Group (7-5-5); Regional Tariff Working Group (14-2-3); and Operating Reliability Working Group (9-1-1).

The task force’s recommendation termed the changes “an incremental improvement over the existing timeline for improving coordination between the market results and the Timely and Evening nominations.” The group also said the changes will allow for day-ahead market and reliability unit commitments to be provided before the evening nomination and sufficient time in the morning for “price formation” before the day-ahead market closes.

SPP estimates it will take approximately $1.5 million and 14 months to implement the current changes, which would require FERC’s approval of the tariff changes and new software implementation. RTO officials’ long-term goal is to post day-ahead market results before the timely gas nomination.

Opposition in the North

The change was opposed by several members in SPP’s north, where cold weather affects natural gas supplies during critical time frames, including Lincoln Electric and the Omaha and Nebraska public power districts.

In stating its opposition, Nebraska Public Power District said SPP and its members should have taken their timeline concerns to FERC before developing a revision request. “Spending $1.5 million and not [getting] what we need … actually could make it worse for the market overall,” NPPD said.

NPPD and City Utilities of Springfield also said the change would hurt forecast accuracy, particularly for wind generation.

Springfield noted that SPP has a large share of intermittent wind generation — making forecasts especially important —while experiencing fewer gas constraints than eastern RTOs.

“The greatest benefits of [the change] impact less than 10 days a year (3%) at the detriment of the remaining 355 days,” Springfield said. “SPP has a relatively small percentage of gas generation in their average stack and a ~40% capacity benefit margin, which provides needed cushion in the current construct.”