Optimal Joint Bid Strategies for Energy and Ancillary Services in the California ISO Market
A process for generating optimal bid strategies has been developed and implemented at Southern California Edison to provide short term information for bid preparation into the day ahead California ISO market. It involves a number of steps where the short term optimization model of the Vista DSS commercial system is used on a daily basis to generate a joint schedule for both energy and ancillary services, derive opportunity costs and price volume curves, as well as apply a backcasting methodology to verify the validity of the bids. Results relevant to each step of the process for typical conditions are discussed and presented. The benefits of such an implementation lie in the fact that the interactions between the various markets, water availability and consideration of operational constraints are rigorously represented in the analysis. The model is complete with data integration and represents a significant step in providing greater automation of the bid preparation process.