OCTOBER 8-9, 2013| WESTBOROUGH, MA

Carissa P. SedlacekMANAGER, RESOURCE ANALYSIS INTEGRATION

Modify Timeline to Improve Information Dissemination

Non-Price Retirements Timeline

Overview

• Under the current timeline, a resource with a Non-Price Retirement (NPR) rejected for reliability may decide after the auction whether or not to retire

• This is an unintended consequence due to the length of window associated with the submission and review of NPR’s

• ISO-NE is proposing changes to the NPR timeline that will result in more information in the Forward Capacity Auction (FCA) Informational Filing to FERC and improve other downstream processes

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Summary of Proposed Changes

Current• NPRs submitted during a four

month window that closes in early October

• ISO-NE review is based on a sliding 90 day review timeline, based on first come, first serve

• FCA Information Filing submitted to FERC without final NPR reviews completed due to sliding timeline

Proposed• NPRs due at the same time as de-

list bids at the Existing Capacity Qualification Deadline

• All reliability reviews to be conducted between June and September (120 days). All NPRs to be studied simultaneously creating efficiencies

• ISO-NE completes review prior to FCA Information Filing thereby providing additional information to FERC and stakeholders

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Summary of Proposed Changes cont’d

Current• Partial NPRs may result in a low

winter Qualified Capacity which cannot be cured with a Composite Offer because the NPR determination is made after the Composite Offer window closes

• Due to timing, NPR’s are not included in requirements (ICR/LSR/MCL) calculations

Proposed• NPR reliability review will be

completed prior to the Composite Offer window

• Since NPR’s will be known earlier, they can be included in both requirements (ICR/LSR/MCL) calculations and the newly proposed Capacity Zone methodology

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Summary of Proposed Changes cont’d

Current• Participant election to indicate

whether a retained resource intends to retire regardless of reliability determination may occur after the FCA, leading to unanticipated auction outcomes in prices and quantities

• Permanent de-list bids converted into a NPR after receipt of Qualification Notification Determination have a 90 day review period by ISO-NE

Proposed• Participant election to indicate

whether a retained resource intends to retire regardless of reliability determination occurs 15 days prior to the FCA

• Permanent de-list bids converted into a NPR after receipt of Qualification Notification Determination have a 30 day review period by ISO-NE

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Potential Non-Price Retirement Timeline

Next Steps

• At the November Markets Committee meeting, the ISO will bring revised market rule language and request a vote in December– Request action by the Participants Committee in January– Effective date no later than May 1, 2014

• It is intended that these rules changes would be in place for FCA #9

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