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Winter Program Proposals. Pete Fuller NEPOOL Markets Committee June 3, 2014. Today’s Discussion. As proposed by ISO, the Winter Program presents a fragile, high-risk structure
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Winter Program Proposals Pete Fuller NEPOOL Markets Committee June 3, 2014
Today’s Discussion • As proposed by ISO, the Winter Program presents a fragile, high-risk structure • By rigidly specifying both the minimum inventory requirement and the payment rate, ISO risks resources choosing not to participate, either because they cannot reach the specified inventory levels or they find the payment rate too low, or both • Resources with fuel delivery challenges that elect to participate run the risk of falling just short of the required inventory, and getting no compensation at all for incremental fuel stored on-site • ISO’s proposal has similarities to the discredited vertical demand curve in FCM
NRG’s Proposal • Establish a ‘curve’ of start-of-season inventory levels and payment rates. For example: • Analysis Group’s calculations support the ISO’s proposed rate as the minimum to compensate for holding incremental inventory; higher payment rates will encourage resources to pursue higher inventory levels * Subject to confirming/finalizing ISO’s proposed rate.
