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SZAWG Final Report. October 5, 2006. SZAWG Members. Mandate. To provide recommendations that will correct problems contributing to inaccuracies in the settlement zone totals.

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szawg final report

SZAWG Final Report

October 5, 2006

  • To provide recommendations that will correct problems contributing to inaccuracies in the settlement zone totals.
  • To provide reasonable certainty that all existing errors in settlement zone totals have been found, so that the suspended PFAMs can be released.

Importance of System Level Metering

Since the opening of the market in 2001, the market has settled

  • 252,000 GW.h in energy. (from WSI)
  • 363 GW.h processed as PFAMs
  • error rate of approximately 0.14%
  • Using average Pool Price of $61.62 that’s $22,368,060

(does not include all amounts re-settled in 2002 through the mandated “Final Final” settlement run)

if we do nothing
If we do nothing
  • continued large errors and adjustments to retailers
  • inaccurate zone totals leading to inaccurate load settlement (e.g. NSLS shape for zone is incorrect)
  • inaccurate zone totals leading to inaccurate transmission loss allocations
  • loss of confidence in settlement process and results
  • inefficient processes in industry
  • increased retailer risk
  • “system level” is hourly values for distribution interchange, distributed generation, and border customer consumption that are needed to describe the total hourly energy flow on the AIES at the transmission level and the inputs and outputs to each and every distribution settlement zone for each hour.
system level pfam issues
System Level PFAM issues:
  • Gathers small errors over a long period
  • Long lag time
  • No site level detail in final outcome
  • Coordination with RDS regulation is an issue
  • Impact not manageable
  • Undermines market confidence
  • Causes and consequences of these kinds of errors affect different parties
  • Was intended for occasional use only


  • Reduce the number of errors made in the future through improved processes, controls, and testing procedures, and
  • Identify and correct errors prior to Final Settlement.

SZAWG did not exhaustively test or vet these across industry as a whole, and expects implementing agencies will gather broader stakeholder feedback on the Final Report.

  • These recommendations will:
    • reduce error overall,
    • catch most remaining errors prior to Final Settlement
    • reduce PFAM to occasional use – as was intended.
  • No reason, from SZAWG point of view, to continue the PFAM suspension.
    • Things will get better gradually as recommendations are implemented
next steps
Next Steps
  • Written feedback to be provided by October 19, 2006 to:
  • Implementing agencies to
    • accept recommendations,
    • establish a plan to implement, and
    • develop a process to measure and report progress.