FERC Orders

Order 827 — 15-Minute Settlement Intervals (2015)

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Definition

Required RTOs and ISOs to shorten wholesale market financial settlement intervals from 60 minutes to 15 minutes, aligning settlements with the actual 5-minute dispatch intervals used in real-time grid operations and eliminating the perverse incentives created when hourly prices obscured short-term supply-demand imbalances. The shorter settlement intervals better rewarded fast-ramping resources for their true operational value and removed artificial arbitrage opportunities. Energy storage and demand response resources particularly benefited, gaining the ability to capture intra-hour price variation that had been invisible under hourly averaging.

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