Gas-Electric Coordination

Quarterly Report to the Commission

Docket No. AD12-12-000

December 19, 2013

Disclaimer: The matters presented in this staff report do not necessarily represent the views of 

the Federal Energy Regulatory Commission, its Chairman, or individual Commissioners, and are not 

binding on the Commission. 

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Slide 1

December 19, 2013

Gas-Electric Coordination 

Quarterly Update

Docket No. AD12-12

This presentation is Commission staff’s fourth Quarterly Update on Gas-Electric Coordination 

Activities, as directed by the Commission in its November 15, 2012 order in Docket No. AD12-

12, and covers the period September 2013 to December 2013. 

As noted in previous quarters, national trade organizations and their members continue to 

engage in discussions regarding gas-electric coordination with the RTOs and ISOs. Many of the 

trade associations’ individual members continue to also be involved in regional gas-electric 

working group efforts and regional studies. This report focuses on significant new national 

and regional developments since our last report, and briefly summarizes Commission 

initiatives, including the issuance of a Final Rule expressly authorizing the sharing of nonpublic operational information between natural gas and electric operators, highlights of the 

RTO presentations at the October Commission Meeting, and recent industry applications filed 

with the Commission. 
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Slide 2

National and Interregional Initiatives

 Natural Gas Council Gas Day Initiative

 NAESB

 EIPC

 EISPC

Starting with national and interregional developments, members of the natural gas industry 

recently launched the Natural Gas Council Gas Day Initiative, to consider the benefits and 

consequences of potential modifications to the timing of the Natural Gas Operating Day and 

the nationwide schedule for natural gas nominations. A technical working group and steering 

committee for the initiative have been meeting since October to gather information and 

develop recommendations for consideration by the Natural Gas Council. The group is also 

conducting outreach with the electric industry. 

NAESB’s Wholesale Electric Quadrant (WEQ) and Wholesale Gas Quadrant (WGQ) Executive 

Committee determined earlier this year that the Commission’s proposed rule on 

communications of operational information between natural gas pipelines and electric 

transmission owners would require no changes in current business practice standards. This 

task force will reconvene after the first of the year to consider whether the Commission’s 

November 2013 Final Rule on this subject (Order No. 787, noted later in this report) will 

require changes in the current business practice standards. 

Progress continues on the multi-regional Eastern Interconnection Planning Collaborative 

(EIPC) Study involving ISO-NE, NYISO, PJM, MISO, Ontario IESO and TVA. EIPC selected Levitan 

& Associates to conduct the four-phase study, with each phase defined by a separate 

“target.” Target 1 will focus on establishing a baseline of existing natural gas and electric 

systems for the Eastern Interconnection footprint. Target 2 will explore infrastructure 

adequacy using natural gas and electric simulation models to explore a 5-10 year horizon. 

Target 3 will include a contingency analysis. Target 4 will explore dual-fuel capability.

The study plan was kicked off during the October 31- November 1 Stakeholder Steering 

Committee meeting. The study is in the data collection stage and participants will be 
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working on scenario and assumption development through the end of the year. The first draft 

study deliverable is scheduled for April 2014 and will include the results of Target 1.

The Eastern Interconnection States’ Planning Council (EISPC) conducted a Council Meeting on 

October 28 and 29. Progress continues on the ICF-led long-term Natural Gas/Electric 

Infrastructure Requirements Study. The study focuses on the target-year 2030 and is 

currently establishing the baseline natural gas infrastructure and scenarios for the analysis. 

In addition to pre-existing EIPC Phase II Scenario analysis, the study will analyze cooptimization of both the natural gas and electric systems for long-term infrastructure 

requirements. The final results are to be completed by Summer 2014. 
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Slide 3

Regional Initiatives 

Northeast & Mid-Atlantic

 Northeast 

• NESCOE

• ISO-NE

 Mid-Atlantic

• NYISO 

• PJM

Turning to regional initiatives, we start with the Northeast and Mid-Atlantic. 

Since staff’s third quarter report, the New England States Committee on Electricity (NESCOE) 

Gas-Electric Focus Group commissioned Black & Veatch to provide a Hydro Imports Analysis, 

an extension to the September 2013 Incremental Hydropower Imports Whitepaper and based 

on the Phase III Gas-Electric Study assumptions. The hydro analysis, completed in the 

beginning of November, examined adding 3,600 MW of hydroelectric imports from eastern 

Canadian Provinces into the New England region. The analysis assumed incremental imports 

enabled by three (3) new 1,200 MW transmission lines from points in Canada into areas of the 

New England power grid, one from New Brunswick to Massachusetts, one from Quebec 

through New York to Connecticut, and a line from Quebec to Vermont. The study assessed 

the economic and electric sector emissions impacts on the New England electricity market 

likely to result from importing additional hydro from Eastern Canada, as one of the long-term 

solutions recommended in the Black & Veatch Phase III Gas-Electric Study. 

With ISO-NE’s short-term Winter Reliability Program in place for this winter, and its multiphase studies completed, NESCOE is now focusing on medium and longer term initiatives. The 

group is now working on combining the findings from prior commissioned studies into a final 

advisory recommendations report for consideration by entities with responsibility/authority 

for implementing such solutions. The report will:

• Describe agreed-upon challenges that emerged in Focus Group discussions/meetings; 

• List electric market-related solutions ISO-NE is on course to implement;

• List gas system and/or gas market-related solutions the gas industry is on course to 

implement;

• Identify potential solutions that may have appeal to some stakeholders and/or states but 

that require further analysis before implications can be fully understood and judgments 

can be formed; 
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• Identify the appropriate entity able and/ or willing to develop such analysis to inform 

future decisions;

• Identify those potential solutions on which market participants and states broadly believe 

there is adequate information available, but where there is no consensus to implement; 

and

• Identify those potential solutions on which there is adequate information available for 

decision-making and for which there is consensus to implement. This includes information 

about next steps, authority to implement, and a forward-looking process. 

Representatives from NESCOE presented this outline along with findings from the Black & 

Veatch three-phase Gas-Electric Study and the recently completed hydro studies at NESCOE’s 

Restructuring Roundtable on November 15, 2013.

Also, on December 5, the Governors of six New England states signed an agreement, “New 

England Governor’s Commitment to Regional Cooperation on Energy Infrastructure Issues.” In 

this agreement, the Governors commit to continued development of regional energy 

infrastructure in a coordinated approach to maximize cost savings and system integrity while 

enabling the states to meet clean energy and greenhouse gas reduction goals. The states 

have directed appropriate staff to work together with NESCOE and ISO-NE, and to use recent 

regional energy infrastructure studies conducted by the States, ISO-NE, and other regional 

organizations to inform their work on energy infrastructure issues. 

Beginning December 10, NYISO began using its “gas-visualization” video board in a new 

control room center to increase gas awareness of the pipeline conditions. NYISO plans on 

improving the video board to include real-time pipeline system alerts and operational flow 

orders and will soon be populated with real-time data. NYISO highlighted the 800-MMcfd New 

Jersey-New York pipeline expansion, which since it came online November 1 has and should 

continue to help alleviate natural gas constraints into New York City. Additional details on 

this project are provided later in the report. 

PJM also noted the benefits of the New Jersey-New York pipeline expansion, along with 

supply area expansions in Pennsylvania, Ohio, and West Virginia, will benefit the PJM region 

as it has benefitted NYISO. Columbia Gas upgrades to existing infrastructure should also 

increase supply access to PJM and reduce supply constraints. 
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Slide 4

Regional Initiatives 

Central

 MISO

 SPP

 ERCOT

In the Midwest, the Electric and Natural Gas Coordination Task Force (ENGCTF) developed a 

draft issue paper examining whether locational marginal prices appropriately reflect gas 

generator dispatch costs, as well as any reliability impacts unique to natural gas as a 

generation fuel. Preliminary findings suggest that current business rules in MISO are sufficient 

to allow stakeholders to react in an appropriate and timely manner to natural gas and electric 

market conditions. 

On December 6, MISO released findings from its Phase III Gas Electric Infrastructure study. 

The study examined historical and current natural gas pipeline flow patterns on major 

interstate pipelines in the MISO Midwest footprint. The study also addressed the 

infrastructure and conditions that impact gas deliverability to existing and forecasted gasfired power generation in the MISO Midwest footprint, for a 20-year planning horizon. Final 

results indicate sufficient gas pipeline capacity and natural gas supply. However, the results 

indicate that future natural gas pipeline infrastructure expansion is still needed to move 

supplies into the region from the Northeast, and to address area-specific constraints. MISO 

also examined natural gas supply adequacy in its MISO South region with the integration of 

Entergy into its footprint. The findings suggest there is ample natural gas pipeline 

infrastructure and capacity to meet demand.

MISO’s ENGCTF group continued to meet monthly over the past quarter. In October, MISO 

leadership agreed with the following recommendations of the Task Force:

• Investigate the impact of Reserve Shutdown hours on loss of load expectation (LOLE) study 

results. 

• Examine capacity accreditation issues related to fuel availability. 

• Investigate the adequacy of current Generating Availability Data System (GADS) cause 

codes to capture natural gas fuel disruption issues, specifically Lack of Fuel events. 
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• Investigate transitioning to a seasonal resource adequacy construct to address the winter 

peaking natural gas market as well as summer peaking electricity market. 

SPP’s planned Gas-Electric Coordination Summit has been delayed. The Summit will bring 

together the SPP Gas Electric Coordination Task Force and members of the gas industry for an 

overview of current coordination conditions in the SPP footprint, and to promote 

collaborative development of a plan for any remaining needed improvements.

ERCOT participated in the Texas Energy Reliability Council (TERC) conference call on 

November 12 to review the winter outlook. Texas natural gas pipelines and suppliers 

reported that storage facilities were near full going into the winter season and that no 

significant supply or delivery problems were anticipated. Pipeline improvements have been 

made in North Texas to address local capacity issues, and electric generators reported that no 

unusual outages are anticipated for the coming winter.

Finally, ERCOT reported that a Non-Disclosure Agreement (NDA) has been finalized that allows 

the sharing by both industries of detailed gas infrastructure information, such as detailed 

information of the physical gas pipeline system, from gas pipelines and suppliers, and detailed 

electric infrastructure information from ERCOT, transmission and distribution companies, and 

black start resources. The NDA enables natural gas pipelines to work closely with ERCOT in 

the black start planning process for 2014-2015.
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Slide 5

Regional Initiatives

West

 CAISO 

 PNUCC

 WIEB – SPSC

 Desert Southwest Pipeline Stakeholders 

Task Force

Turning to the West, in the second week of December, the West experienced extreme cold, 

leading to surging natural gas demand and well freeze-offs. In Southern California, 

constrained pipelines in the San Diego and the Southern Los Angeles basin could not meet the 

surging demand from home heaters and natural gas generators, which were exacerbated by 

the shutdown of the San Onofre Nuclear Generating Station. In a coordinated effort, CAISO 

redispatched generation, enabling both gas and electric customers to be served. CAISO 

maintained communications with both natural gas providers, Pacific Gas and Electric and 

SoCal Gas, throughout the cold spell, often hourly, building on protocols developed two years 

ago, that include daily calls on the outlook for power plant gas demand and conditions on the 

gas systems.

Also in the West, there are a number of sub-regional natural gas-electric coordination 

initiatives. 

In the Pacific Northwest, the Pacific Northwest Utilities Conference Committee (PNUCC) 

Power and Natural Gas Planning Task Force continues to provide a platform for natural gas 

pipelines and electric utilities to discuss enhanced communications and coordination issues. 

For example, the Western Interstate Energy Board’s (WIEB) Natural Gas – Electric and System 

Flexibility Assessment is underway. The study is being conducted by a consulting team 

consisting of Energy and Environmental Economics (E3) and DNV GL (formerly GL Noble 

Denton), and supervised by a Technical Advisory Group (TAG) consisting of Western electric 

and natural gas utilities, natural gas pipeline companies, and state officials. In their latest 

meetings the TAG has been working on establishing the study subregions in the Western 

Interconnection, vetting data sources, developing the scenarios and contingencies for the 

study, and reviewing preliminary results. After receiving industry feedback on the scenarios 

in November, E3, the contracted consultant for the study, is now proceeding with the model 
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runs. The pipeline working group plans to convene in January 2014, when the group will 

begin to more fully engage in Phase 2 activities. 

WIEB reports that the study is ahead of schedule. The Phase 1 report is expected to be 

completed in February 2014, with preliminary results anticipated in late December, which 

will allow the process of identifying the areas to target for Phase 2 to begin. Preliminary 

work on Phase 2, including model development and pipeline outreach, is underway. The 

pipeline working group will begin meeting in January 2014.

Since last quarter, the Desert Southwest Pipeline Stakeholders Task Force conducted 

discussions with various pipelines, marketers and producers to receive feedback on its 

summary of problems and proposed solutions for addressing reliability, market, and long-term 

capacity needs. The Task Force is in the process of preparing a whitepaper that summarizes 

its position and plans to file this document with the Commission before the end of January 

2014.
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Slide 6

Commission Initiatives

 October 17 RTO/ISO Presentations

• Summer 2013 Relevant Events/Experience

• Winter 2013-14 Outlook

 Order No. 787

As required by the Commission’s November 2012 Order, representatives from each RTO and 

ISO, including ERCOT, appeared before the Commission in October to share their continued 

progress in providing better coordination between the natural gas and electric industries and 

ensure adequate fuel supplies. The RTOs and ISOs reported no significant issues this summer. 

They also reported on their Winter 2013-14 reliability plans. The RTO and ISO meeting 

presentations are posted on the Commission’s website. 

Additionally, in November, the Commission issued a Final Rule allowing interstate natural gas 

pipelines and electric transmission operators to share non-public, operational information 

with each other to promote the reliability and integrity of their systems. 

In brief, the Final Rule authorizes interstate natural gas pipeline and electric transmission 

operators to voluntarily share non-public, operational information. To protect against undue 

discrimination and ensure that the shared information remains confidential, the rule also 

adopts a No-Conduit Rule that prohibits recipients of the information from disclosing it to an 

affiliate or a third party. The Final Rule takes effect on December 23, 2013. 
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Slide 7

Relevant 

Natural Gas Filings

Region Pipeline Capacity/Initiative Docket No. Status

Mid-Atlantic Eastern Shore Natural Gas Company 

(White Oak Lateral Project)

Capacity expansion 

~55,200 Dth/d

CP13-498 Approved

Mid-Atlantic Transcontinental Gas Pipe Line 

Company, LLC

(Virginia Southside Expansion Project)

Capacity expansion 

~270,000 Dth/d

CP13-30 Approved

Mid-Atlantic Columbia Gas Transmission, LLC

(VEPCO Lateral Project) 

Capacity expansion 

~224,000-246,000 

Dth/d

CP11-490 In-Service 

10/20/2013 

Northeast Eastern Shore Natural Gas Company 

(Greenspring Expansion)

Capacity expansion 

~15,000 Dth/d

CP12-461 In-service 11/13

Northeast New Jersey – New York Expansion 

Project

Capacity expansion 

~800,000 Dth/d

CP11-56 In-service 11/13

Gulf Coast Gulf Crossing Pipeline Company LLC 

(Panda Power Lateral Project)

Capacity expansion 

~278,400 Dth/d

CP13-64 In-Service Phase I 

12/3/2013

Gulf Coast NET Mexico Pipeline Partners, LLC 

(Border Crossing Project)

Capacity expansion 

~2.1 Bcf/d

CP13-482 Approved

Our last area to cover is applications that have been filed with the Commission. We highlight 

previously reported filings to expand pipeline capacity serving electric generation that have 

been the subject of recent Commission action as well as projects affecting natural gas-fired 

generation that became operational in the last quarter. 

In the Mid-Atlantic regions, introduced last quarter, Eastern Shore Natural Gas Company 

received approval for its White Oak Lateral Project first filed on June 13, 2013. The proposed 

project will enable it to provide 55,200 dekatherms per day (Dth/d) of firm transportation 

service for Calpine Energy Services, L.P. supporting gas-fired generation in Kent County, 

Delaware.

Another project approved since staff’s last quarterly report is the Transcontinental Gas Pipe 

Line Company, LLC (Transco) Virginia Southside Expansion Project. The project will enable 

Transco to provide 270,000 Dth/d of incremental firm transportation service to Virginia Power 

Services Energy Corp., Inc. (Virginia Power) and Piedmont Natural Gas Company, Inc. 

(Piedmont).

Staff would like to highlight a project that was recently placed in service in the Mid-Atlantic, 

the Columbia Gas Transmission, LLC (Columbia) VEPCO Lateral Project. The project will 

enable Columbia to provide up to 224,000 Dth/d of firm transportation service to Virginia 

Power in the summer months (April through September) between Columbia Gulf Transmission 

Company’s (Columbia Gulf) delivery point to Columbia at Leach, Kentucky and the primary 

delivery point situated at the VEPCO power station. The project will also allow Columbia to 

provide up to 246,000 Dth/d of firm transportation service to Virginia Power during the winter 

months (October through March) between Columbia’s interconnect with Transcontinental Gas 

Pipe Line (Transco) near Rockville, Maryland and the primary delivery point situated at 

VEPCO’s power station.
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In the Northeast, Staff notes Eastern Shore Natural Gas Company’s Greenspring Expansion 

Project placed in service November 8, 2013. The project will enable Eastern Shore to provide 

up to 15,040 Dth/d of additional firm transportation service for two divisions of a local 

distribution company and an electric generator (NRG Center Dover LLC (13,440 Dth/d), 

Chesapeake Utilities-Delaware Division (1,100 Dth/d), and Chesapeake Utilities-Maryland 

Division (500 Dth/d)). 

Another project placed on-line in the Northeast, is Spectra Energy’s Texas Eastern 

Transmission, LP New Jersey – New York Expansion Project (NJ-NY Project). On October 4, 

2013, the Spectra Energy Companies requested authorization from to place the Project 

facilities in service with the request granted on October 17, 2013. The facilities placed inservice on November 1, 2013 will provide 800,000 Dth/d of firm transportation service into 

the Borough of Manhattan, New York. The NJ-NY Project enable significant volumes of gas 

from multiple upstream production areas to reach the New Jersey and New York metropolitan 

market area new and existing gas consumers such as utilities and electric generators. 

In the Gulf Coast, Phase I of the Gulf Crossing Pipeline Company LLC (Gulf Crossing) Panda 

Power Lateral Project went online on December 3, 2013. The lateral will be capable of 

providing up to 278,400 Dth/d of firm transportation service from Gulf Crossing’s Sherman 

Compressor Station near Sherman, Texas, to an interconnection with Panda Sherman’s 

electric power plant under construction. Gulf Crossing entered into a transportation 

agreement with Panda Sherman to provide up to 125,000 Dth/d of firm service to the power 

plant for a term of 20 years.

The Commission also approved another Gulf Coast project, the NET Mexico Pipeline Partners, 

LLC (NET Mexico) Border Crossing Project. NET Mexico proposes to construct approximately 

1,400 feet of 48-inch diameter pipeline extending from a point in Starr County, Texas to the 

international border. The pipeline will be installed using a horizontal directional drill under 

the Rio Grande River. The facility will have a design capacity of 2.1 Bcfd and will provide 

supply to the expanding natural gas demand from gas-fired power generation in Mexico. 
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Slide 8

Relevant 

Natural Gas Filings (cont’d)

Region Pipeline Capacity/Initiative Docket No. Status

Northeast Transcontinental Gas Pipe Line 

Company

(Woodbridge Delivery Lateral Project

Capacity expansion 

~264,000 Dth/d

CP14-18 Pending

Southeast Transcontinental Gas Pipe Line 

Company

Capacity expansion 

~225,000 Dth/d

CP13-523 Pending

Southeast Florida Gas Transmission Company 

(Pompano Compressor Station 21.5 

Project) 

Capacity expansion 

~25,000 Dth/d

CP14-21 Pending

Gulf Coast Houston Pipe Line Company, LP 

(Border Crossing Project)

Capacity expansion 

~140,000 Dth/d

CP14-13 Pending

South Gulf South Pipeline Revisions to Rate 

Schedule Enhanced 

Nomination Service

RP13-1310 Effective 

10/3/2013

Southeast Southeast Supply Header, LLC Additional Nomination 

opportunities

RP13-1329 Effective 

10/16/2013

Staff also notes four (4) natural gas projects pending before the Commission. In the 

Northeast, the Transcontinental Gas Pipe Line Company, LLC (Transco) Woodbridge Delivery 

Lateral Project will enable Transco to provide 264,000 Dth/d of incremental firm natural gas 

transportation service. The new delivery lateral will extend 2.4 miles from Middlesex County, 

New Jersey to the Woodbridge Energy Center, an electric generating station currently being 

developed by CPV Shore, LLC (CPV) also in Woodbridge, Middlesex County, New Jersey.

In the Gulf Coast/Southeast, mentioned last quarter, Transco’s Mobile Bay South III Expansion 

Project is still pending. Transco filed on July 18, 2013, proposing to add 225,000 Dth/d of 

firm transportation capacity to serve power generation in the Southeast and Florida. 

Another filing pending before the Commission is the Florida Gas Transmission Company (FGT) 

Pompano Compressor Station 21.5 Project. FGT proposes to construct, own and operate 

compression and auxiliary facilities in order to provide increased pressure for deliveries of 

natural gas at the Florida Power and Light Company (FPL) Port Everglades Next Generation 

Clean Energy Center, which is currently under construction. The FGT project has been 

designated as the FGT Pompano Compressor Station 21.5 Project (Project) and is designed to 

meet the needs of the new FPL Port Everglades Next Generation Clean Energy Center.

In the Gulf Coast, Houston Pipe Line Company, LP (HPL) proposed the Border Crossing Project. 

This project will support the abovementioned Border Cross Project. HPL proposes to extend 

its intrastate pipeline system by constructing approximately 23 miles of pipeline, among other 

facilities, from a point on its existing 24-inch Edinburg Lateral in Hidalgo County, Texas 

(Edinburg Extension) (non-jurisdictional facilities) to the FERC-approved Border Crossing 

Project; and a short stub line on the Mexico side of the International Border which will 

redeliver natural gas supplies into the Pemex Pipeline, which is owned by Pemex Pipeline, 

S.de R.L. de C.V.
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In addition, two interstate natural gas pipelines made filings to provide increased service 

flexibility. On September 3, 2013, Gulf South Pipeline Company, LP filed a revised tariff 

record to adjust the nomination and confirmation deadlines for Additional Enhanced 

Nomination Service Nomination Cycle 3 to better align the nomination cycles and facilitate 

more timely reporting of scheduled quantity information to customers. (Docket No. RP13-

1310-000). On September 24, 2013, the proposal was accepted for filing by delegated order, 

effective October 3, 2013.

On September 16, 2013, Southeast Supply Header, LLC filed revised tariff records to allow 

shippers additional nomination opportunities beyond the four standard NAESB nomination 

cycles. (Docket No. RP13-1329-000). On October 15, 2013, the proposal was accepted for 

filing by delegated order, effective October 16, 2013.
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Slide 9

Relevant

Electric Filings

Entity Filing Initiative Docket No.

Dominion Energy 

Marketing and ISO-NE

Recover over $336,095 in fuel costs as well as 

regulatory costs, and new cost recovery trigger

ER13-1291, 

ER13-2149 and 

EL13-72

ISO-NE and New 

England Power Pool

A reliability project for winter 2013-14 ER13-1851

ISO-NE and New 

England Power Pool

Offer flexibility changes ER13-1877

ISO-NE and New 

England Power Pool

Alternative proposals to revise ISO-NE’s tariff to 

expand the definition of what constitutes a Shortage 

Event for resources with Capacity Supply Obligations 

(CSO) in the Forward Capacity Market (FCM)

ER13-2313

Recent filings made by the electric industry to address increasing reliance on natural gas-fired 

generators, as well as previously-reported filings that have been the subject of recent 

Commission action, are highlighted on this slide. 

Updating on the previously reported Dominion Energy Marketing and ISO-NE filing [Docket 

Nos. ER13-1291, EL13-72 and ER13-2149], on November 7, 2013, the Commission accepted 

ISO-NE’s compliance revisions allowing resources to submit a filing pursuant to section 205 of 

the FPA to recover fuel and other variable costs in extraordinary circumstances where they 

are dispatched beyond their day-ahead schedules to meet critical reliability needs, effective 

June 25, 2013 (November 7 Order). The November 7 Order reaffirmed that out-of-market 

cost recovery should be appropriately tailored to allow resources to recover costs when called 

upon to address critical reliability concerns in extraordinary circumstances, while limiting 

market distortions and ensuring that supply offers remain financially binding. Also on 

November 7, 2013, the Commission denied Dominion’s request that the Commission grant 

rehearing of its determination that ISO-NE must submit tariff revisions to allow resources to 

submit a section 205 filing to seek cost recovery, including cost recovery of fuel and variable 

operation and maintenance costs in specific circumstances. Rather, Dominion requested that 

resources should be allowed to recover costs when dispatched for reliability reasons 

“regardless of how ISO-NE characterizes the reliability reason.” 

On the previously noted ISO-NE Winter Reliability Program (Docket No. ER13-1851), since last 

reported, the Commission issued an order on September 16, 2013 accepting the proposed 

Winter Reliability Program to become effective September 6, 2013 through February 28, 2014, 

as requested, and the proposed tariff provisions regarding market monitoring to become 

effective September 6, 2013, as requested, subject to a compliance filing allocating costs to 

Real-Time Load Obligation and revising ISO-NE’s tariff to remove referenced dates from 

Appendix K (September 16 Order). On October 15, 2013, ISO-NE and NEPOOL filed tariff 
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revisions to comply with the September 16 Order (October 15 Compliance Filing). On October 

16, 2013, the Retail Energy Supply Association (RESA) and TransCanada Power Marketing Ltd. 

(TCPM) filed separate requests for rehearing of the September 16 Order. On November 13, 

2013, ISO-NE’s and NEPOOL’s October 15 Compliance Filing was accepted for filing by 

delegated order, effective September 6, 2013. RESA and TCPM’s requests for rehearing are 

pending before the Commission.

Additionally, the Commission issued an order on October 7, 2013 accepting the results of ISONE’s Winter 2013-2014 Reliability Program bid selection process, subject to a compliance 

filing further detailing its evaluation process in selecting winning bids and to update the bid 

results to reflect the corrected bids of Essential Power Massachusetts and Exelon (October 7 

Order). On October 15, 2013, ISO-NE filed further information on each of the Commission’s 

outlined points, in response to the October 7 Order (October 15 Compliance Filing). In the 

October 15 Compliance Filing, ISO-NE proposes to accept 1.95 million MWh (81.3% of its 

targets MWh) at a cost of $75.1 million. On November 6, 2013, TransCanada Power Marketing 

Ltd. (TCPM) filed a request for rehearing of the October 7 Order. On November 13, 2013, ISONE’s October 15 Compliance Filing was accepted for filing by delegated order. TCPM’s 

request for rehearing is pending before the Commission. (Docket No. ER13-2266-002).

On October 3, 2013, the Commission conditionally approved ISO-NE and NEPOOL’s proposal in 

Docket No. ER13-1877-000 allowing market participants to change their energy market offers 

in real-time during the operating day, effective December 3, 2014.Commission approval was 

made subject to ISO-NE submitting a compliance filing within 60 days to address potential 

inconsistencies between ISO-NE’s intended application of the new market power mitigation 

rules and the proposed tariff language (October 3 Order). On October 21, 2013, ISO-NE and 

NEPOOL filed a motion for an extension of time to comply with the October 3 Order. On 

October 30, 2013, an extension of time was granted to and including January 17, 2014. 

On September 4, 2013, ISO-NE and NEPOOL jointly submitted two alternative proposals to 

revise ISO-NE’s tariff to expand the definition of what constitutes a Shortage Event for 

resources with Capacity Supply Obligations (CSO) in the Forward Capacity Market (FCM) for 

the purposes of measuring performance and assessing penalties to include any deficiency of 

Thirty-Minute Operating Reserves for 30 or more contiguous minutes to incent resource 

availability during reserve deficiencies (Docket No. ER13-2313). The Commission issued an 

order on November 1, 2013 approving ISO-NE’s proposal to modify the definition of a Shortage 

Event to incent better performance during periods of system stress, to become effective 

November 3, 2013, as requested (November 1 Order). The November 1 Order found that the 

ultimate goal of the revisions is to ensure that resources needed for reliability are available 

during reserve shortages to address reliability concerns.
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Slide 10

December 19, 2013

Gas-Electric Coordination 

Quarterly Update

Docket No. AD12-12

Staff’s next quarterly report is due in March. Staff will continue regular outreach with 

national and regional entities and with regulated entities regarding their efforts on gaselectric coordination.