Market Operations receives and prepares bids and offers into the wholesale energy market and evaluates the incoming bids from the wholesale market against the needs and the cost of operation. To facilitate this process, Market Operations needs to know what resources, such as distributed generation or demand response, are available and for how long. In a system without AMI, resource information must be estimated from the historical load profiles averaged from a small set of selected meters. The meters used to build the load profiles may or may not be the same meters involved in the wholesale market transaction. Using AMI, Market Operations acquires from the AMI system the actual aggregate load measured by a particular subset of the utility’s meters that are of interest to Market Operations. This subset of meters may, for instance, represent a single customer offering to supply distributed generation over a particular time period for a contracted price; or it may represent a number of customers who are offering through a third-party aggregator to reduce their load. Using the AMI System, Market Operations can make better decisions about which wholesale transactions to make because:
• The AMI measurements are made from a sample better resembling the portion of the load that is the subject of the wholesale transaction, and,
• The AMI measurements are taken very close in time to when the transaction will take place, Some time after a wholesale transaction has been completed, Market Operations settles the transaction using actual usage data gathered by the AMI system during the period specified in the transaction. Data from the AMI System is used to prepare bills and invoices to multiple parties involved in the transaction based on existing contracts and tariffs.