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When it comes to energy markets, settlement statements play a crucial role in ensuring that all transactions are accurately recorded and billed. In this blog post, we’ll dive into the different types of settlement statements used in the Southwest Power Pool (SPP) and compare them to those in other major ISO/RTO markets like CAISO, MISO, and PJM.
You’ll learn about the specific types of settlement statements in SPP, how they function, and how they stack up against similar statements in other markets. By the end of this post, you’ll have a clear understanding of how these statements help maintain transparency and accuracy in energy transactions.
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What are settlement statements?
Settlement statements are detailed reports that outline the financial transactions between market participants and the ISO/RTO. These statements include charges and credits for energy, ancillary services, and other market activities. They are essential for ensuring that all parties are accurately compensated for their contributions to the grid.
Types of settlement statements in SPP
In SPP, there are several types of settlement statements, each serving a specific purpose:
S7 scheduled settlement statements: These are the initial settlement statements produced approximately seven days after the operating day. They include all validated data received by SPP prior to the cutoff time.
S53 scheduled settlement statements: These statements are produced 53 days after the operating day and include any adjustments or corrections made since the S7 statement.
S120 scheduled settlement statements: Produced 120 days after the operating day, these statements capture any further adjustments or corrections.
Resettlement statements (R): These can be created for any given operating day as needed, where “ddd” represents the number of days after the operating day. They are used to address disputes or errors that arise after the initial settlements.
SPP’s settlement statements are accessible electronically via a secured portal or through XML download, ensuring that market participants can easily review and reconcile their transactions.
Comparing SPP to other ISO/RTO markets
CAISO
In CAISO, settlement statements are also produced at regular intervals. The initial settlement statement, known as the T+3, is produced three days after the operating day. Subsequent statements, such as the T+12 and T+55, are produced 12 and 55 days after the operating day, respectively. These statements ensure that all market activities are accurately recorded and any discrepancies are addressed promptly.
MISO
MISO produces several types of settlement statements, including the S7, S14, S55, and S105. The S7 statement is the initial settlement, produced seven days after the operating day. The S14, S55, and S105 statements are produced 14, 55, and 105 days after the operating day, respectively. These statements allow for ongoing adjustments and corrections to ensure accuracy.
PJM
PJM’s settlement process includes the initial settlement statement, produced three days after the operating day, followed by subsequent statements at 30, 60, and 90 days. These statements provide a comprehensive view of all market transactions and ensure that any errors or disputes are resolved in a timely manner.
Why settlement statements matter
Settlement statements are a vital component of the energy market, providing transparency and accuracy in financial transactions. By understanding the different types of settlement statements in SPP and how they compare to those in CAISO, MISO, and PJM, market participants can better navigate the complexities of the energy market. These statements ensure that all parties are fairly compensated and that the market operates smoothly and efficiently.
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