Review of Adjusted Baseline Capping for Demand Response Assets

1. September 23, 2019 | Holyoke, MA Scott Lehman Associate analyst, asset registration & auditing Review of adjusted baseline capping for Demand Response Assets Adjusted Baseline Capping of Demand Response Assets

2. Background This presentation will review capping of the adjusted Demand Response Baseline at the Maximum Load value for Demand Response Assets Adjusted baseline capping is a step in the baseline calculation to ensure assets are evaluated against a realistic baseline condition The ISO has received questions regarding this aspect of the baseline calculation, and will review it here for all participants

3. Topics Review of tariff language on adjusted baseline capping and Maximum Load value How baseline capping can occur Potential impacts to performance calculations Importance of maintaining accurate Maximum Load values

4. Market Rule 1 From the tariff: III.8.2.4 Adjusted Demand Response Baseline “the adjusted Demand Response Baseline in any interval… shall not exceed the asset’s Maximum Load”

5. Maximum Load Value From the tariff: I.2.2 Definitions “Maximum Load is the highest demand since the start of the prior calendar year (or, if unavailable, an estimate thereof), as measured at the Retail Delivery Point.” Entered by the Lead Participant and stored in CAMS for each Demand Response Asset Can be updated and backdated as necessary

6. Maximum Load Value – Data Quality Impacts • Intervals reported above 125% of an asset’s Maximum Load flagged as bad quality • Treated as a zero in baseline calculation • Given a zero for performance • Intervals reported at less than 125% of an asset’s Maximum Load are not flagged as bad quality • Participants should review any intervals that exceed the current Maximum Load and update the Maximum Load if appropriate • Intervals consistently reported above the Maximum Load can lead to baseline capping • There is no cap on the unadjusted baseline – capping is only applied to the adjusted baseline when necessary

7. Baseline Capping Example: ABC Steel ABC Steel Processing is a fictional Demand Response Asset The facility shuts off equipment when dispatched The facility recently added additional capacity, but the Maximum Load value in CAMS has not been updated Maximum Load value currently registered as 4 MW

8. Baseline Capping Example Bad data threshold = 5 MW Anything above 5 MW will be flagged as bad Max Load Value = 4 MW Adjusted baseline cannot exceed 4 MW

9. Baseline Capping Example Dispatch! Adjusted Baseline capped at Maximum Load registered in CAMS

10. Baseline Capping Example Asset misses out on this performance due to incorrect Max Load Value Dispatch! Load Reduction

11. Importance of Maintaining Accurate Maximum Load Values • Participants should have processes in place to ensure Maximum Load values are accurate, and should review assets that are exceeding their Maximum Load Sets cap on adjusted baseline (100% of Max Load) Sets threshold for bad quality data (125% of Max Load) Inaccurate value can adversely impact performance calculations, independent of actual load reduction provided Max Load can be updated retrospectively