NEPOOL MARKETS COMMITTEE | FEBRUARY 11-12, 2014

Christopher ParentCPARENT@ISO-NE.COM | 413.540.4599

Discussion of the proposed approach to complete the remaining design changes regarding NCPC credits and energy market offer conforming changes and their relationship to the NCPC cost allocation project

Energy Market Offer Flexibility, NCPC Credits and NCPC Cost Allocation

Significant work has been completed to support the energy market related enhancements

• Significant work has been completed on the energy market enhancements scheduled– Changes associated with the Energy Market Offer Flexibility project

were filed on July 1, 2013 (ER13-1877-000) and accepted by the FERC on October 3, 2013

– Changes associated with the NCPC Payments project were filed with the FERC on January 24, 2014 (ER14-1147-000)

– Changes associated with the NCPC Cost Allocation: Phase 1 project are being discussed with stakeholders

• All of these changes are scheduled for implementation in Q4-2014

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Additional conforming changes are required to complete the energy market related enhancements

• The ISO is evaluating conforming changes to other markets/areas to support the Energy Market Offer Flexibility project including;– Regulation Market– Forward Capacity Market – Forward Reserve Market & Reserve Auditing– Critical Reliability Issue Cost Recovery

• Additional conforming changes are required to Market Rule 1, Appendix A and Appendix F to support the NCPC Payments project

• Conforming changes are also required to the NCPC cost allocation rules to:– Integrate existing tariff provisions into the new Appendix F tariff construct

proposed under the NCPC Payments project– Conform the cost allocation rules for minimum generation event related

NCPC as proposed under the NCPC Payments project– Modify the cost allocation eligibility rules for alternative technology

regulation resources integrated into the regulation market in the Regulation Market (Order 755) project

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ISO is proposing to group these conforming changes into two projects

• All changes related to Market Rule 1, Appendix A and Appendix F (NCPC payments) will be included under the Energy Market Offer Flexibility Conforming Changes project– An initial presentation to the committee is anticipated for March

• All changes related to Appendix F (NCPC cost allocation) will be included under the NCPC Cost Allocation: Phase 1 project– These additional changes are anticipated to be introduced to the

committee in March

• A number of administrative clean-up type items (e.g., capitalizing defined terms, removing provisions that are no longer applicable) have also been identified which will be grouped into the appropriate project

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