A Study Of Linked Virtual Transaction In New York Electricity Market

As part of the New York Independent System Operator (NYISO) standard market design, the Transmission Congestion Contract (TCC) is an important instrument for hedging congestion in the Day-ahead Market (DAM). As a variant of the TCC, a Linked Virtual Transaction (LVT) product is being introduced by NYISO to provide market participants the opportunity to hedge congestion risk in the real time market. In this paper, the impact of LVTs on DAM computational performance and power flow convergence is investigated. Two alternative approaches are presented to address the power flow convergence challenge and the proposed approaches are demonstrated to be effective and efficient in NYISO Day-ahead market.