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May 14-15, 2013 | Westborough, ma

May 14-15, 2013 | Westborough, ma. Andrew Gillespie. Market development agillespie@iso-ne.com (413) 535-4088. Proposal. FCM Shortage Event Trigger. Background. Current Performance Measure Summary. Intermittent Power Resources Not subject to penalty during a Shortage Event

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May 14-15, 2013 | Westborough, ma

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  1. May 14-15, 2013 | Westborough, ma Andrew Gillespie Market developmentagillespie@iso-ne.com (413) 535-4088 Proposal FCM Shortage Event Trigger

  2. Background

  3. Current Performance Measure Summary • Intermittent Power Resources • Not subject to penalty during a Shortage Event • Demand Resources • Performance based on Monthly Capacity Variance, which is based on monthly Demand Reduction Values (i.e., not based on performance during a Shortage Event). • Generation and Imports - Availability Score (III.13.7.1.1.1.A) • Hourly availability score is the sum of the resource’s available MW, plus any adjustments, divided by the resource’s Capacity Supply Obligation

  4. System-wide shortage event trigger

  5. System-Wide Shortage Event Trigger • The current system-wide shortage event trigger is thirty or more minutes of Reserve Constraint Penalty Factor (RCPF) pricing (system TMNSR RCPF = $850/MWh) • The decision to use this RCPF (versus TMOR RCPF) beginning in June 2010 was based on the numerous shortage events that would have otherwise been triggered using the then TMOR RCPF of $100/MWh • Using this TMOR RCPF would have triggered many Shortage Events that were not then truly indicative of a shortage condition • The TMOR RCPF was changed to $500/MWh June 1, 2012

  6. Proposal A system-wide shortage event would be either: • Thirty or more contiguous minutes of system-wide TMNSR Reserve Constraint Penalty Factor activation/pricing ($850/MWh) – current trigger or,new additional trigger • Thirty or more contiguous minutes of system-wide TMOR Reserve Constraint Penalty Factor activation/pricing ($500/MWh) when Actions2 or 5 under Operating Procedure No. 4 have also been implemented NOTE: A Shortage Event would NOT be triggered due to a shortage of replacement reserves

  7. Operating Procedure No. 4 – Actions ACTION 2 (An ISO responsibility) Dispatch Real Time Demand Resources in the amount and location required. ACTION 5 (An ISO responsibility) Arrange to purchase available emergency capacity and energy, or energy only, (if capacity backing is not available) from Market Participants or neighboring RCAs/BAAs. Control Area to Control Area transactions will normally be used as a last resort, when market-based emergency energy transactions are not available, or not available in a timely fashion. Link to (OP 4) Operating Procedure No.4

  8. Historical Data Using the proposed criteria for a system-wide Shortage Event trigger, there would have been two shortage events since the first commitment period began June 1, 2010 • July 22, 1011 This is based on simulations done regarding the change of the TMOR RCPF to $500 (RCPF Activation Data posted to the Markets Committee, March 3, 2013), and the actual use of OP-4 actions • January 28, 2013 NOTE: September 2, 2010 would NOT have been a shortage event because none of the periods with RCPF pricing were of a duration longer than 20 minutes

  9. Summary of Events, July 22, 2011 (Friday) • Operating reserve surplus on Friday morning was projected to be 616 MW, based on an updated forecast load of 27,610 MW from the Morning Report (actual load was 27,702 MW) • Peak hour forced outages and reductions totaled 3,403 MW, against 1,960 MW listed in the Morning Report • Just prior to noon, a large unit tripped which created a deficiency in thirty minute operating reserve and the resultant initial entry into OP#4 • Limited ability of our neighbors to provide capacity and energy assistance during the peak hours (energy could flow in emergency situations) • More information in August 2011 COO Report

  10. Summary of Events, January 28, 2013 (Monday) • At 16:00 a medium-sized generator experienced a forced outage (approximately 200-300MW) • At 17:17 a different medium-sized generator tripped (approximately 400-500MW) • This created a deficiency of thirty minute operating reserves • Approximately 400MW • At17:30 the ISO implemented M/LCC #2 & OP-4 Actions 1 & 2 • 373MW of Demand Resources dispatched (Action 2) • At 21:00 the ISO cancelled OP-4 Action 2 • At21:30 M/LCC #2 and OP-4 Action 1 cancelled • More information in February 2013 COO Report

  11. Reserve Pricing on January 28, 2013 OP-4; Actions 1 & 2 implemented at 17:30- cancelled at 21:30 Shortage Event 17:30 to 18:15

  12. Import constrained capacity zone shortage event trigger

  13. Import-Constrained Zone Trigger • The current import-constrained capacity zone trigger language lists certain actions under OP 4 (Action During a Capacity Deficiency), or OP 7 (Action in an Emergency) as constituting a “Shortage Event” • The qualifying statement in the market rule, “that is declared based on adequacy and not security” does not adequately distinguish what would and would not constitute a shortage event, and hence, what actions/events under these two operating procedures are to be associated with ‘adequacy’ and which are to be associated with ‘security’

  14. Current Tariff Provisions (b) In an import-constrained Capacity Zone, as determined pursuant to Section III.13.2.3.4, a Shortage Event shall also be any OP4 Action 6, OP4 Action 12, OP4 Action 13, or OP7 event, or their successor operating procedures, that is declared based on adequacy and not security, as defined in the ISO New England Manuals, with a duration of thirty or more contiguous minutes, and that is not also declared outside of the Capacity Zone. (c) An export-constrained Capacity Zone, as determined pursuant to Section III.13.2.3.4, shall be exempt from a Shortage Event if an OP4 Action 6, OP4 Action 11, OP4 Action 12, OP4 Action 13, or OP7 event has been declared for the Rest-of-Pool Capacity Zone but not for that export-constrained Capacity Zone.

  15. Proposal • Clarify the import-constrained zone Shortage Event trigger • Implementing OP-4 or OP-7 in an import-constrained zone, for a duration of thirty or more contiguous minutes, will constitute a Shortage Event in the zone, provided the action (OP-4 or OP-7) is for the entire capacity zone • Implementing OP-4 or OP-7 in only a sub-area of the zone will not constitute a Shortage Event • Clarify/clean-up zone provisions (both import- and export-constrained zones) • Treatment is meant to apply to the zone when the adjacent zone is not is the same condition

  16. Schedule

  17. Schedule • 1st Markets Committee meeting November 2012 • 2nd Markets Committee meeting December 2012 • 3rd Markets Committee meeting April 2013 • 4th Markets Committee meeting May 2013 • 5th Markets Committee meeting (vote) June 2013 • Participants Committee meeting August 2013 • File August 2013 • Effective Date October 2013

  18. Andrew Gillespieagillespie@iso-ne.com

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