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A pseudo-tie resource model is a means by which a resource (i.e., generation unit or load) is operationally transferred from one balancing authority (BA) area in which the resource is physically located (i.e., native BA) to another (i.e., attaining BA area). The attaining BA has responsibility for operational control of the pseudo-tie resource for both system reliability and electricity market purposes. By implementing a pseudo-tie, the California In dependent System Operator Corporation (ISO) BA is able to attain control of resources physically located external to its jurisdiction for its BA area services. This paper discusses the implementation of a pseudo-tie generator (PTG) with primary focus on its modeling in the ISO full network model (FNM) and participation in the nodal-based LMP electricity markets, namely, the integrated forward market (IFM) and real-time market (RTM). The PTG has also been discussed in the context of system reliability and market operational principles, resource scheduling and bidding, outage reporting, 5-min real-time economic dispatch and pricing. Furthermore, the paper highlights some of the key operational characteristics and differences between pseudo-tie and conventional dynamically scheduled resources.