September 10-11, 2013 | Westborough, ma. Andrew Gillespie. Market development [email protected] (413) 535-4088. Concept. Resources Retained for Reliability. What is the issue?.
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When an ‘out-of-market’ resource is retained to meet the system requirement it can displace both new and existing ‘in-market’ resources
Because the local reliability need is not fundamentally different than the system or zonal need, compensation is based on the current de-list bid structure – i.e., based on avoided costs (pre-FCM Performance Incentive de-list bid structure)
The FCM PI de-list bid structure, if used as a basis for compensation for resources retained for reliability:
*‘LRO’ is not a current term, but created for discussion purposes