1 / 12

April8, 2014| NEPOOL MARKETS COMMITTEE

April8, 2014| NEPOOL MARKETS COMMITTEE. Janine Dombrowski . jdombrowski@iso-ne.com | 413.540.4448. Additional clean-up changes to support implementation. Energy Market Offer Flexibility: Conforming Rules.

heath
Download Presentation

April8, 2014| NEPOOL MARKETS COMMITTEE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. April8, 2014| NEPOOL MARKETS COMMITTEE Janine Dombrowski jdombrowski@iso-ne.com | 413.540.4448 Additional clean-up changes to support implementation Energy Market Offer Flexibility: Conforming Rules

  2. Additional changes are required to support the Energy Market Offer Flexibility and NCPC Payments projects • The ISO has identified revisions to defined terms and has identified some instances of defined terms which are not capitalized • The ISO is proposing to remove obsolete language and update references • The ISO has identified conforming and design changes

  3. Defined Terms • Several terms contain obsolete references and some terms are deleted as they are no longer defined • A new term, Facility and Equipment Testing was created to support III.F.1(f). In addition, defined terms created as part of the NCPC Payment project have been added to I.2.2. • Economic Min has been revised to accommodate non-dispatchableresource output and testing •  Several instances of newly defined terms have been identified that are not properly capitalized. Defined terms have been capitalized throughout the tariff in Sections III.1.10.1(e), III.1.10.1A(c)(v), III.13.6.1.1.1, III.13.6.1.5.4.3.3, III.13.7.1.1.3, III.13.7.2.7.1.1.1

  4. Obsolete Language • Obsolete NCPC language has been removed from the tariff in sections III.1.10.1(e),III.1.10.2(d), III.1.10.2(f)-(i), III.1.11.1, III.1.11.3 (c), III.6.4 and a reference has been updated in III.1.10.7(h)(i) •  The ISO is also proposing to remove provisions • in III.1.10A(d)(viii) related to guaranteeing offer across days as no longer necessary under the commitment decision construct and • III.1.10A(f), a requirement for participants to provide a 7-day resource availability forecast

  5. Design Changes • The ISO is proposing to modify the Forward Reserve Market deadline in III.9.6.1 for submitting offers above the Forward Reserve Threshold Price from the close of the Re-Offer Period to no later than 30 minutes prior to the start of the operating hour. • The ISO is proposing to remove the Dual-Fuel Switching Provisions added to the tariff by the ISO’s December 19, 2013 filing with the Commission (ER14-707-000). This deletion is in III1.11.3(g). • With the implementation of the offer flexibility changes the dual-fuel switching provisions are no longer necessary

  6. Design Changes •  Modify the Regulation Market rules in III.14.5 to create a floor on the penalty price. The penalty price is $100 plus the energy component of the real-time LMP, and, a penalty price less than $0 means that the selection algorithm would not select any resources. This change creates a floor of $0 on the penalty price. •  Modify the rules in III.14.8(b)(ii) to consider a scenario introduced by the Energy Market Offer Flexibility project that permits a resource to schedule intra hour. A unit selected for regulation that updates its offer through this option will have its energy opportunity cost set to zero.

  7. Design Changes • Remove the III.A.15 Cost Recovery Provisions • Delete the recently added III.F.1(c) provision for Treatment of Minimum Run Time Changes in Subsequent Operating Day as it is unnecessary under the Energy Market Offer Flexibility implementation

  8. Design Changes • Clarify the eligibility for NCPC credits when performing audits or Facility and Equipment Testing in III.F.1(f), Eligibility for NCPC Credits When Performing Audits or Facility and Equipment Testing • Clarify eligibility for Real-Time Commitment NCPC Credits when the resource is pool-scheduled and elects to use some hours of that commitment to audit or perform testing. (III.F.1(f)(i) and (v)) • A resource which is self-scheduled or is undergoing an audit that requires dispatch without advance notice will remain ineligible for both Real-Time Commitment NCPC Credits and Real-Time Dispatch NCPC Credits. (III.F.1(f)(ii), (iii) and (vi))

  9. Design Changes • Modify Eligibility for Real-Time Posturing NCPC Credits for Limited Energy Resources Postured for Reliability for oil units: Same methodology as Pump Storage Posturing, except that replacement cost of remaining fuel is estimated using oil index price and the resource’s energy offers • 7 Steps • Determine replacement value of fuel (methodology for oil) • Determine replacement fuel cost proxy price • Determine proxy heat rate for postured unit implied by offer prices at EcoMin and EcoMax • Determine value of fuel in $/MWH using proxy heat rate • Determine amount of available fuel in MWH using proxy heat rate • Determine posturing credit (same method as for pump storage units) • Determine “Actual” value: postured revenue + remaining fuel value • Determine “Best Alternative” value: optimized revenue + remaining fuel value had unit not been postured • Posture credit is the Best Alternative value – Actual value

  10. Oil Unit Posturing Credit Example

  11. Oil Unit Posturing Credit Example

  12. Oil Unit Posturing Credit Example

More Related