NYISO conducts energy market auctions in two phases. The Day Ahead Market is conducted prior to the commencement of each day. Forward contracts are established for each hour of the coming day. The Real Time Market is conducted when the load actually occurs. Most energy in the NYISO is transacted in the Day Ahead Markets.
The Power Supplier Balancing Market Energy settlement ($) is intended to credit or charge Market Participants acting as Power Suppliers for Balancing Market energy sold or purchased in the NYISO Balancing Energy Market. This settlement accounts for energy variations in a generator's real-time dispatch from what is sold in the NYISO DAM and/or via DAM Transaction Schedules.
Since this settlement addresses energy variations from the DAM, it can be either a credit or a charge to the Power Supplier. The Power Supplier will be charged for balancing market energy in cases where the generator sold more energy in the DAM and/or via DAM Transaction Schedules than it is dispatched in Real-Time (RT < DAM). Otherwise, the Power Supplier will be credited for balancing market energy in cases where the generator sold less energy in the DAM and/or via DAM Transaction Schedules than it is dispatched in Real- Time (RT > DAM).
The Power Supplier Balancing Market Energy settlement is based on the Power Supplier's Real-Time actual generation minus its Total Scheduled Transaction Energy minus it's DAM Sold Energy (MW) at a given generator, multiplied times the three corresponding bus Real-Time price ($/MW) components (energy, loss, and congestion). The settlement is determined at the Real Time Dispatch (RTD) dispatch interval (~5-minute) for each Power Supplier - Generator where Balancing Market Energy. The total settlement is the sum of 3 components as follows:
