Installed Capacity (ICAP) Market - · PDF fileParties to a contract for capacity report the...

FOR TRAINING PURPOSES ONLY©COPYRIGHT NYISO 2018. ALL RIGHTS RESERVED

Installed Capacity (ICAP) MarketNicolé K. GrottoliSenior Market Trainer, NYISO

New York Market Orientation Course (NYMOC)

March 20-23, 2018Rensselaer, NY

1


ICAP Market Module Objectives

Describe the benefits of the ICAP Market Identify the role of the Installed Reserve Margin in the

Capacity Market Identify the NY Control Area and Transmission District

Capacity Requirements Explain the reason for Locational requirements Name at least two requirements of capacity Suppliers

2


ICAP Market Module Objectives – Cont’d Calculate the UCAP value for a supplier Describe the Load obligations of an LSE Distinguish between the three different ICAP Auctions Calculate the settlement for an auction award Identify at least one condition that could be subject to

sanctioning

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© COPYRIGHT NYISO 2018. ALL RIGHTS RESERVED. FOR TRAINING PURPOSES ONLY

ICAP Market Overview and Benefits

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ICAP Market Overview

Offers to sell capacity into auctions Bids to procure capacity through the auctions NYISO runs auctions to match bids and offers and

determine a clearing price Parties to a contract for capacity report the sales to the ISO Auxiliary processes and activities

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Determine the Amount of Capacity Required Determine the Amount of Capacity Available Determine the Amount of Capacity Suppliers are

Qualified to Offer Determine the Amount of Capacity Obligation to Procure

6



NYISO establishes ICAP requirements each Capability Year (May 1st – April 30th)

These ICAP requirements are used to determine the UCAP requirements each Capability Period and each individual LSE’s UCAP requirements

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Installed Capacity vs. Unforced Capacity ICAP requirement is translated to UCAP value

• Accounts for historic availability of suppliers• Calculated by NYISO every Capability Period• Calculated for NYCA and localities

8


ICAP and UCAP Requirements NYCA Capacity Requirements

• NYCA Minimum ICAP• NYCA Minimum UCAP

TD Capacity Requirements• Transmission Owner TD Minimum UCAP

Locational Capacity Requirements• Locational Minimum ICAP• Locational Minimum UCAP of LSEs• LSE Minimum UCAP in addition to Locational UCAP obligation

*LSE Capacity Requirements• LSE Locational Minimum UCAP• LSE NYCA Minimum UCAP

* LSE = Load Serving Entity

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Benefits • Ensures resource adequacy• Provides a means for resources to recover a portion of

fixed costs• Provides market signals for investment

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How do generators benefit from the ICAP market?

How do loads benefit from the ICAP market?

Let’s Review

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Amount of Capacity Required

-How much do we need?

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NYCA Minimum Installed Capacity Requirement

Ensures resource adequacy• Supply is sufficient to meet load

• Meets Reliability Standards

Established Annually

13


How much capacity is required? NYCA Minimum ICAP Requirement uses the

Installed Reserve Margin (IRM)

Installed Capacity Requirement


Locational Minimum ICAP Requirements:G-J Locality, LI & NYC

- Capacity above firm system load required to provide for equipment outages (both forced and scheduled) and transmission capability limitations.

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Installed Reserve Margin (IRM) Established annually by the NYS Reliability Council (NYSRC) for

the upcoming Capability Year

Based on the Northeast Power Coordinating Council (NPCC) Standard for Resource Adequacy• “…the probability (or risk) of disconnecting any firm load due to

resource deficiencies shall be, on average, not more than once in ten years.”

Expressed as a percentage

IRM for 2017 Capability Year is 18.0%• 2016: 17.5%• 2015: 17.0%• 2014: 17.0%

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NYCA Minimum Installed Capacity Requirement NYCA Minimum ICAP Requirement =

Forecasted NYCA Peak Load X (1 + IRM) Based on the Installed Reserve Margin (IRM) Calculated by NYISO each Capability Year Expressed as a MW value Minimum Locational Installed Capacity Requirements

also established

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Forecast Peak Load• Last year’s NYCA coincident peak load, adjusted for:

• Load reductions provided by Demand Side Resources• Weather• Changes in Load Growth

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NYCA Minimum Unforced Capacity Requirement ICAP requirement converted to UCAP value

• Accounts for historic availability of units

NYCA UCAP Requirement =Min ICAP X (1 – Avg. Derating Factor)

Calculated by NYISO each Capability Period Expressed as a MW value Minimum Local Capacity Requirements also established

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NYCA Minimum Unforced Capacity Requirement Derating factors by location

• Average Unavailability• Weighted Average of all NYCA Derating Factors• Recalculated each Capability Period

Location Winter 2016-2017 Summer 2017 Winter 2017-2018G-J Locality 5.80% 7.31% 7.54%Long Island 6.36% 5.60% 6.07%New York City 5.44% 4.37% 5.26%NYCA 7.25% 9.29% 8.43%

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ICAP and UCAP Values

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ICAP and UCAP ValuesLocational Requirements Season: Winter 2016-2017

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Transmission District (TD) Capacity

TD Minimum ICAP Requirement Example for Con Edison(Winter 2016-2017 values)

• Con Edison of NY Forecasted Peak Load: 13,704.6 MW• NYCA IRM: 17.5%• TD ICAP Requirement:

= TD Forecasted Peak Load X (1 + NYCA IRM)= 13,704.6 X (1 + 0.175) = 16,102.9

22


TD Minimum UCAP Requirement Based on the annual NYCA Forecasted Peak Load and the

individual TD Forecasted Peak Load

TD Min UCAP Requirement = NYCA Min UCAP Requirement X (TD Forecasted Coincident Peak Load / Sum of Forecasted Coincident Peak Loads for all TDs)

TD Min UCAP used to calculate LSE Minimum UCAPRequirement

*Refer to Section 3.3 of the ICAP Manual23


TD Minimum ICAP and UCAP RequirementsMinimum Requirements for the Con Edison TD

(Winter 2016-2017 values)

– Forecasted Peak Load for TD Con Edison is 13,704.6 MW

– NYCA IRM is 17.5%

– TD ICAP Requirement = TD Forecasted Peak Load X (1 + IRM)

• Calculated on Slide #21

– TD UCAP Requirement = NYCA UCAPRequirement X (TD FPL / Sum of TD FPL)

– 36,354.8 X (13,704.6 / 33,358.8 ) = 14,935.4

17.5% Margin

13,704.6 MWForecasted Peak

Load for Con Edison

Transmission District

EXAMPLE

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16,102.9Con Ed TD ICAP Req.

14,935.4Con Ed

TD UCAP Req.

* FPL = Forecasted Peak Load24


ICAP and UCAP Values

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Amount of Capacity Available

-How much do we have?

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Determine the Amount of Capacity Available Suppliers provide data to demonstrate their capability to

produce a certain number of MW (Resource Capability) Seasonal effects are taken into consideration Resource Capability determined by one of the following

• DMNC / DMGC Test• Performance Test• Resource Nameplate • Actual Production Data

27


Determine the Amount of Capacity Available Dependable Maximum Net Capability (DMNC) Test

• Demonstrates a generator’s ability to generate power• Tested every Capability Period • Must coordinate test with NYISO• Different rules for different classes of generator• Value determines ICAP value for the Capability Period*

Dependable Maximum Gross Capability (DMGC) Test• Applicable to Behind-the-Meter Net Generation Resources• The same procedures that apply to DMNC also apply to DMGC• Refer to ICAP Manual Section 4.2

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Capability Periods and Test Periods

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Winter Capability Period Summer Capability Period

Winter Test PeriodNov 1st-April 15th

Summer Test PeriodJune 1st-Sept 15th

Exceptions to these test periods are Special Case Resources Out of period testing permitted for specific conditions - see ICAP Manual

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How often must a DMNC test be conducted?

a) annuallyb) weeklyc) monthlyd) every Capability Period

Let’s Review

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When can a DMNC test be conducted for the summer capability period?

a) April 15th – Sept 15thb) May 1st – Aug 31st

c) May 1st – Oct 31st

d) June 1st – Sept 15th

e) June 1st – Oct 31st

Let’s Review

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Amount of Capacity Suppliers are Qualified to Offer

-How much can be sold?

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Unforced Capacity (UCAP) How UCAP is calculated depends on the type of Resource:

• Generators, System Resources and ELRs: Based on EFORd

• SCRs: Based on their Average Coincident Load and use Performance Factor instead of EFORd

• Control Area System Resource: Based on Control Area Resource and Load (CARL) Data

• Intermittent Power Resource: Based on the amount the Intermittent can provide during system peak Load hours, as determined per ISO Procedures

• Limited Run-of-River Hydro Resource: Determined separately for Winter and Summer Capability Periods as rolling average of the hourly net Energy provided by each resource during the 20 highest NYCA integrated real -time load hours in each of the five previous Summer or Winter Capability Periods

33


UCAP for Resources

A generator may sell Capacity equal to its maximum demonstrated outputadjusted for the deliverability limit and by its historic availability.

UCAP = Available ICAP X (1- Derating Factor)

CAPACITY TO OFFER

MAXIMUM DEMONSTRATED OUTPUT

HISTORICAVAILABILITY

DELIVERABILITY LIMIT

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*This formula is for Internal Generators that are not BTM:NG


UCAP Deliverability Limit

Capacity Resource Interconnection Service (CRIS)• Class Year Deliverability Studies are conducted to determine

the amount of capacity that resources can deliver to any point in its Capacity Region

• Applicable to new resources or existing resources that request to increase their CRIS

• CRIS Value or “CRIS CAP”• *Note: “Capacity Region” has a different meaning than “Locality.”

• Demonstrated output adjusted to account for deliverability• “Available ICAP”

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UCAP Deliverability Limit

Capacity Resource Interconnection Service (CRIS) • Enables a resource to participate in the NYISO Installed

Capacity market to the extent of its deliverable capacity

• Considers system deliverability upgrades

• In order to qualify for CRIS, a generator or controllable transmission facility seeking to participate in the Capacity market (i.e., with UDRs) must either

• Be determined by the NYISO to be deliverable for all or a portion of its requested CRIS; or

• Commit to fund the upgrades necessary to make it deliverable

36


Available ICAP Available ICAP for Internal Resources

• Available ICAP Summer = Minimum (Summer CRIS MW Cap, Summer DMNC)

• Available ICAP Winter =

When Winter CRIS % is specified: = TRUNC (Winter CRIS % x Winter DMNC, 1)

When Winter CRIS CAP MW is specified:= Min (Winter CRIS CAP, Winter DMNC)

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UCAP for Resources



CAPACITY TO OFFER




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Historic Availability

Availability is based on Derating Factors that are a function of one or more of the following factors:

• Forced Outages• Derates• Actual performance

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Derating Factors

Unit Type Derating Factor ICAP ManualReference(s)

Conventional Generator, Energy Limited Resource (ELR), Capacity Limited Resource (CLR)

Equivalent Demand Forced Outage Rate (EFORd)

Section 4.5Section 4.4.4

Special Case Resources (SCR) Historical Performance Factor Section 4.12

Intermittent Power Resources (Wind, Solar, Landfill Gas) Actual Performance “Production Factor” Section 4.5.1

Limited Control Run-of-River Hydro Actual Production Data Attach J Section 3.4

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EFORd

Equivalent Demand Forced Outage Rate

Calculated from• Generating Availability Data System (GADS)• Data Submitted to NYISO Monthly • Forced Outages and Derates

• Dispatched and unable to respond• Unplanned event

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Derates and OutagesDerate Forced Outage

Output

Time

5%

5%

EFORd = .05 EFORd = .05

Available all the time but at a reduced output

Available at full output but for less than 100% of the time

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UCAP for Resources



CAPACITY TO OFFER




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If a resource has a Derating Factor of .05 what is its historic availability?

a) 5%b) 10%c) 50%d) 95%e) 100%

Let’s Review

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What is the maximum capacity that a unit can sell given that it has a DMNC of 200 MW, deliverable CRIS CAP of 190 MW and an historic availability of 0.95?

a) 10 MWb) 100 MWc) 180.5 MWd) 190 MWe) 200 MW

Let’s Review

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What is the maximum capacity that a unit can sell given that it has a DMNC of 200 MW, deliverable with a CRIS CAP of 190 MW and an historic availability of 0.95?

UCAP= Available ICAP X (1- Derating Factor)


CAPACITYDELIVERABILITY LIMIT


CRIS CAP 190200 MW

(1 - 0.05)

UCAP = (190) X 0.95UCAP = 180.5 MW

Let’s Review ANSWERS

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Other Capacity Resources

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Capacity Resources

Generators• Within NYCA • Outside NYCA

Special Case Resources• Within NYCA

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Special Case Resources Categories

• Interruptible Loads• Qualified behind-the-meter Local Generator• SCR Aggregation

Use Performance Factor rather than Derating Factor• Two successive seasonal performance factors (during event and tests)• 1-hour performance test within Capability Period or 1-hour mandatory

event data• Includes best 4 hours of each mandatory event within a Capability Period

**Refer to Section 4.12 of ICAP Manual

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Special Case Resources – cont’d UCAP for SCR

• Pledged amount of load reduction, increased by Transmission District loss factor (TLF) and adjusted by historical performance factor

SCR UCAP = SCR ICAP X Applicable Performance FactorWhere: SCR ICAP = Pledged Amount X (1 + TLF)

Managed by Responsible Interface Party (RIP)

**Refer to Section 4.12 of ICAP Manual

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External Capacity Resources External CRIS Rights: (ECRs)

• One time opportunity to convert Grandfathered Rights were to External CRIS Rights or awarded through the Class Year process

• Contract or Non-Contract Commitment • Consequences for not supplying

Capacity associated with Existing Transmission Capacity for Native Load (“ETCNL”)

Capacity associated with Unforced Capacity Deliverability Rights (UDRs)• Linden VFT• Cross Sound Cable• Neptune• HTP

Import Rights• First Come First Served: Subject to Import Limits

*External Installed Capacity Supplier requirements listed in ICAP Manual, Section 4.9

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External Capacity Resources: Import Limits Import Limits are set to determine the amount of capacity that can be

imported into NYCA using the “First Come First Served” Process

Limit is established after considering External CRIS Rights• Established by NYISO• Based on reliability studies• Determined annually• Available Import Rights are based on Import Limits

• Calculated for each month of upcoming Capability Period

*Import Limits: ICAP Manual, Section 4.9.6*Import Rights: http://www.nyiso.com/public/markets_operations/market_data/icap/index.jsp

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http://www.nyiso.com/public/markets_operations/market_data/icap/index.jsp


External Capacity Resources: Import Limits -Maximum provided by resources outside NYCA(Excluding Resources Using UDRs, ETCNL, and External CRIS Rights)

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2017-2018 Capability Year

***Neighboring Control Area rules must provide that the resource will not be recalled or curtailed to satisfy the Control Areas own load.

Amount of External ICAP Permitted to be Allocated Total (MW) Grandfathered (MW) Remaining (MW)

PJM 1140 38 1102

ISO-NE 306 0 306

Ontario 128 0 128

Quebec via Chateauguay 1115

1110 (Apr-Nov)239 (Dec-Feb)

259 (Mar)

5 (Apr-Nov)876 (Dec-Feb)

856 (Mar)

Quebec via Cedars 0 0 0

Total NYCA Interfaces 2689


Unforced Capacity Deliverability Rights (UDRs) Rights associated with a specific transmission interface in a Locality

• Either from an External Control Area or a non-constrained region in NYCA

Allows remote capacity external to the area to be treated as if it were physically located in the Locality

Only associated with Scheduled Lines UDRS approved based on CRIS requested and received in relation to

transfer capability

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Unforced Capacity Deliverability Rights (UDRs)

Current UDRs Awarded

Cross Sound Cable (CSC) - New England to Long Island , Zone K 330 MW

Neptune Cable – PJM to Long Island, Zone K 660 MW

Linden VFT – PJM to New York City, Zone J 315 MW

Hudson Transmission Project (HTP) – PJM to New York City, Zone J 660 MW

*ICAP Manual – Section 4.9.655


UDRs – EXAMPLE

PJM

ISONEResource A

Gen 1 154 MW ICAP 1% Derating

Factor

Resource BGen 2

206 MW ICAP5% Derating

Factor

Scheduled Line_XYZ331.3 MW (UCAP)

UDR Unavailability: 2%

UDR Line Losses: 2.86% (equivalent to 10.3 MW)

4.4 MW Portion of UDR losses

5.9 MW portion of UDR losses

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Amount of LSE Capacity Obligation to Procure

-How much must be purchased?

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LSE Capacity Requirements Obligation to Procure How much must be procured?

• All LSEs are required to purchase a specific amount of the Total NYCA Capacity Requirement

• Based on their contribution to the Transmission District’s peak load coincident with the NYCA peak load

• LSEs may also have Locational Capacity Requirements • (G-J Locality, LI and NYC)

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LSE Capacity Requirements

LSE Minimum ICAP Requirement • Each LSE required to procure a certain percentage of the

Total Capacity Requirement• The amount that forms the base is calculated each

Capability Year and includes:• Forecasted Peak Load• IRM and Locational Capacity Requirement percentages• System changes due to transmission capability

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LSE Capacity Requirements LSE Minimum UCAP Requirement

• NYISO calculates for a Capability Period• Each month each LSE must satisfy its minimum UCAP

requirement• May satisfy via self-supply, bilateral transactions or through NYISO

administered auctions

Why ICAP to UCAP?• Incorporates Derating Factor• Calculated by NYISO every Capability Period• Calculated for NYCA and localities

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LSE Capacity Requirements

LSE Minimum UCAP Requirement • Min UCAP calculated separately for each Transmission

District in which it serves load• UCAP requirement adjusted monthly for customer switching

• For LSEs serving load in G-J Locality, Zone K (LI), or Zone J (NYC), a specified amount of their requirement must be purchased within the LSE’s respective Locality (based on their local load forecast)

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Locational Capacity Requirements Locational Minimum ICAP Requirements

• LSEs required to obtain a certain percentage of their total capacity requirement in the Locality in which they serve load.

• Locational Capacity Requirements (LCRs) established annually for the following Localities:

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2017 Capability YearG-J Locality Requirement 91.5% of G-J forecasted peak load

Zone K (LI) Requirement 103.5% of LI forecasted peak load

Zone J (NYC) Requirement 81.5% of NYC forecasted peak load


Locational Capacity Requirements

Locational Minimum ICAP Requirement (MW) = Local Forecasted Peak Load X Locational Capacity Requirement (LCR) Percentage

63


Summary of Capacity Requirement Percentages 2017 Capability Year (May 2017 - April 2018)

• NYCA: 118.0% [based on the IRM]• Locational Capacity Requirement (LCR)

• G-J Locality: 91.5% • LI: 103.5%• NYC: 81.5%

Note: These values are the NYSRC Executive Committee approved IRM and the NYISO approved LCRs for the 2017 Capability Year

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Example: Locational Minimum ICAP Requirements

For Con Ed’s portion only:• Con Ed’s TD ICAP Requirement = 16,102.9

– Calculated on Slide #21

• G-J Locational ICAP Requirement is 90% of G-J Locality FPL: 13,636.9 X 90% = 12,273.2 MW

• NYC Locational ICAP Requirement is 80.5% of NYC FPL: 11,793.5 X 80.5% = 9,493.8

• Remaining G-J Locational Requirement after meeting the NYC requirement can be purchased in G, H & I:12,273.2 – 9,493.8 = 2,779.4 MW

• Remaining NYCA requirement can be purchased in G, H, I, J, or ROS: 16,102.9 – 12,273.2 = 3,829.7 MW


EXAMPLE

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16,102.9Con Ed TD

ICAP Requirement NYCA (ROS)

3,829.7 MW

G-J Locality (G, H, & I)

2,779.4 MW

NYC9,493.8 MW

ForecastedPeak Load Requirement

Con Ed TD NYCA 13,704.6 117.5%

Con Ed TD G-J 13,636.9 90.0%

Con Ed TD NYC 11,793.5 80.5%

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Locational Capacity Requirements

Locational Minimum UCAP Requirement =

Locational Minimum ICAP X (1 - Average Locational Derating Factor)

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Example: Locational Minimum UCAP Requirement

For Con Ed’s portion only:

• Con Ed’s TD UCAP Requirement = 14,935.4 MW– Calculated on Slide #23

Locational Min ICAP X (1 – Loc. Derating Factor)

• G-J Locational UCAP Requirement is: – 12,273.2 X (1 – 5.80%) = 11,561.3 MW

• NYC Locational UCAP Requirement is:– 9,493.8 X (1 – 5.44%) = 8,977.3 MW

• Remaining G-J Locational UCAP Requirement after meeting the NYC UCAP Requirement can be purchased in G, H, & I:

– 11,561.3 – 8,977.3 = 2,584 MW

• Remaining NYCA UCAP Requirement after meeting the G-J Locational UCAP Requirement can be purchased in G, H, I, J, or ROS:

– 14,935.4 – 11,561.3 = 3,374.1 MW


EXAMPLE

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14,935.4Con Ed TD

UCAPNYCA (ROS)

3,374.1 MW

NYC8,977.3 MW

G-J Locality(G, H, & I)2,584 MW

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ICAP and UCAP Values Locational Requirements Season: Winter 2016-2017

UCAP

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Summary - How much must be procured?

LSE Minimum UCAP Requirement

Procure UCAP at least equal to the LSEs share of the Forecast Peak Load plus a margin and an adjustment for resource availability.• For LSEs serving load in G-J Locality, LI or NYC a specified

amount of their UCAP Requirement must be purchased within the LSE’s respective Locality (based on the Local Load Forecast)

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ICAP and UCAP Requirements NYCA Capacity Requirements

• NYCA Minimum ICAP• NYCA Minimum UCAP

TD Capacity Requirements• Transmission Owner TD Minimum UCAP

Locational Capacity Requirements• Locational Minimum ICAP• Locational Minimum UCAP of LSEs• LSE Minimum UCAP in addition to Locational UCAP obligation

*LSE Capacity Requirements• LSE Locational Minimum UCAP• LSE NYCA Minimum UCAP

* LSE = Load Serving Entity

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Capacity Auctions

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ICAP Market Auctions

Capability Period Auction (Strip Auction)

Monthly Auction

Spot Market Auction

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May SeptemberJune OctoberJuly August

November MarchDecember AprilJanuary February

March AprilFebruaryJanuary

June JulyMay

Auction is run at least 30 days prior to the start of the Capability Period

Capability Period Auction

S T R I P

Auction solves for a (6) Month Strip of UCAP at a Single Price/Month

S T R I P

A bid in this auction is for the same MW level and price for the entire capability period.

SUMMER CAPABILITY PERIOD

WINTER CAPABILITY PERIOD

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June JulyMay

Auction is run at least 15 days prior to the start of

the Month

Monthly AuctionMay buy/sell for any month remaining in the Capability Period

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June JulyMay

• Auction is run 2-4 days prior to the start of the Month• May Sell for upcoming Month only• Must Certify all Capacity before Auction• Solves using the Demand Curve

Spot Market Auction

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ICAP Event Calendar

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Which auction allows market participants to purchase capacity for an entire 6 month period all at once?

a) Capacity Auctionb) Monthly Auctionc) Spot Market Auctiond) Strip Auction

Let’s Review

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What is the purpose of holding the spot market auction?

Let’s Review

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Spot Market Auction and Demand Curve

Demand Curve used to determine a spot market clearing price• Values additional UCAP above Minimum NYCA and

Locational requirements• Reduces price volatility• Provides signal for capacity investment

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Separate ICAP Demand Curves to determine

• Total [NYCA] LSE Unforced Capacity Obligation

• NYC Locational component of LSE UCAP Obligation

• Long Island Locational component of LSE UCAP Obligation

• G-J Locality component of LSE UCAP Obligation

• Demand Curves are reset every four years and include annual adjustments.

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Demand Curve Components1. Reference Point: Set price point for 100% of minimum requirement

– NYCA: $ 9.23– G-J Locality: $12.68– NYC: $19.37– LI: $8.30

2. Maximum Clearing Price: Equal to 1.5 times the estimated localized levelized cost of new peaking unit

– NYCA: $14.10– G-J Locality: $19.64– NYC: $27.31– LI: $21.81

3. Zero Crossing Point: Percentage of requirement where price is $0– NYCA Demand Curve: 112%– G-J Locality Demand Curve: 115%– LI & NYC Locational Demand Curves: 118%

2016/2017 ICAP Based Prices ($/kW-Month)

2016/2017 ICAP Based Prices ($/kW-Month)

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Example of NYCA Demand Curve (ICAP)

$14.10

112%

$/kW

-m

onth

(IC

AP)

$0

100%

$9.23

Maximum Clearing Price

Reference Point

Zero Crossing Point

% of ICAP Requirement

* 2016 / 2017 Capability Year 82


ICAP/UCAP Translation of Demand Curve

Winter 2016/2017 Capability

Period

83


The Demand Curve is applicable to which auction(s)?

a) Capability (Strip) Auctionb) Monthly Auctionc) Spot Market Auctiond) All of the above

Let’s Review

84


Auction Settlements Award amount X Auction Clearing Price

• 100 MW X $2.67/kW-month• Convert 100 MW to kW: (100 MW X 1,000kW/MW)• 100,000 kW X $2.67/kW = $267,000 for the month

Auction Awards appear in following weekly invoice• Monthly amount is prorated by the number of days on the weekly

invoice divided by the number of days in the month

Bilateral Transactions are settled between parties outside of NYISO

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Activities / Responsibilities Submission of GADS Data, monthly Certification prior to applicable auction

• LSE must certify the amount of UCAP it has or has obtained• Suppliers certify UCAP has not been sold for use in an External Control Area • UDR holders certify that their capacity is not already accounted for

elsewhere

Secure UCAP• Bilateral contract (includes self-supply) or NYISO Auction

Bid, Schedule, Notify in DAM Energy Market***

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Bid, Schedule or Notify ICAP Suppliers must either:

• “Bid” [Offer] Energy in the DAM• Schedule a Bilateral Transaction

OR • Notify the NYISO of any outage

The total amount of Energy that an ICAP supplier “bids,” schedules or declares unavailable on a given day must equal or exceed the Installed Capacity Equivalent (ICE) amount of UCAP sold• ICE value is a generator’s capacity sold adjusted for availability

UCAP Sold 1 - Derating Factor

ICE =

Exceptions to this are outlined in Section 4.8 of the ICAP manual

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Offer, Schedule or Notify Example[Trainer to provide values]

How much must this ICAP supplier Offer, Schedule, or Notify in DAM?

Let’s Review

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Sanctions

Failure to comply with bidding, scheduling and notification requirements and procedures Failure to provide required information

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To summarize…IRM

NYCA Minimum ICAP Requirement

Transmission District UCAP Requirement

Individual LSE Minimum UCAP

Requirement

Locational Minimum ICAP Requirement

Transmission DistrictICAP Requirement

UCAP

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ICAP Summary - Supplier Activities Submit DMNC data each Capability Period Submit monthly GADS data, or equivalent Certify prior to ICAP Spot Market Auction Offer capacity in auction Bid, schedule or notify in Day-Ahead Market, if obligated to

do so

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ICAP Summary - Load Activities

Purchase capacity in auction• Minimum requirement• Locational Requirements

Certify prior to ICAP Spot Market Auction

Note: Transmission Owners must submit Adjusted Load data coincident with NYCA peak

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ICAP Summary – NYISO Activities

Review and adjust Demand Curves every 4 years • Through the ICAP Working Group

Provide Minimum ICAP Requirements Calculate UCAP Conduct Auctions Post award data to web Settlement mechanism

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What is the primary purpose of the ICAP market?

a) Ensure sufficient load exists for NYCA generation

b) Ensure competitive pricing of new generationc) Facilitate competitive procurement of

generator fixed costs d) Ensure sufficient resources exist to serve load

Let’s Review

94


In addition to submitting data to support their actual output, what are suppliers also required to do as an ICAP supplier?

Let’s Review

95


Which of the following statements are true regarding DMNC tests?

a) Tests should be conducted only during test periodsb) An out-of-period test can be conducted with prior

NYISO approvalc) In lieu of a test, a generator can submit actual

operating datad) All of the above are true

Let’s Review

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What does UCAP represent?a) unforced operating parametersb) the average availability of a given generatorc) ICAP adjusted for forecast usaged) demonstrated output adjusted for deliverability

and availability

Let’s Review

97


ICAP Market Module Objectives

Describe the benefits of the ICAP Market Identify the role of the Installed Reserve Margin in the

Capacity Market Identify the NY Control Area and Transmission District

Capacity Requirements Explain the reason for Locational requirements Name at least two requirements of capacity Suppliers

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ICAP Market Module Objectives – Cont’d Calculate the UCAP value for a supplier Describe the Load obligations of an LSE Distinguish between the three different ICAP Auctions Calculate the settlement for an auction award Identify at least one condition that could be subject to

sanctioning

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Additional Resources

Tariffs – MST and OATT ICAP Manual ICAP Automated Market System (AMS) User’s Guide Outage Scheduler User’s Guide

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Installed Capacity (ICAP) Market - · PDF fileParties to a contract for capacity report the...

Documents

Transcript of Installed Capacity (ICAP) Market - · PDF fileParties to a contract for capacity report the...