Approval History Approval Date: 3/27/09 Effective Date: 3/31/09 BPM Owner: Dede Subakti BPM Title: Director, Operations Engineering Services Revision History Version Date Description 27 12/01/2015 PRR 868 Clarify ULR Submission Process and PRR 854 capacity counting clarification for Reliability Demand Response Resource (RDRR) and Proxy Demand Resource (PDR) resources 26 07/01/2015 PRR 853 – Update Exhibit A-2 25 04/01/2015 PRR 839 - Change the name of the application that manages resource adequacy capacity information. 24 02/27/2015 PRR 776 - Section 8 outage management system integration: Update Reliability Requirements BPM to support the new outage management system integration and related policy decisions regarding the standard capacity product availability calculations. 23 02/10/2015 PRR 803: Annual standard capacity product grandfathering notification process update 22 01/15/2015 PRR 802: Automated Multiple Substitutions per Resource 21 01/01/2015 PRR 787 Use-Limited Resource Process Updates 20 11/14/2014 PRR 786 Flexible RA Capacity 19 08/01/2014 PRR 743 Annual SCP Grandfathering Notification Process 18 04/01/2014 PRR 724 Supporting the Resource Adequacy one-for-many manual substitution policy initiative. 17 10/9/2013 PRR 693 Update Section 4 “Resource Adequacy Capacity” to accurately reflect existing business processes related to the evaluation of RA/Supply Plans and add more granular details related to implementation of the approved Replacement Requirement for Scheduled Generation Outages initiative
References The definition of acronyms and words beginning with capitalized letters are given in the BPM for Definitions & Acronyms. Please note that the variable names used in the content provided in the BPM Configuration Guides are capitalized for ease of use and are not intended to become defined terms. A description of the variable names is provided in the relevant input or output tables associated with the subject Charge Code or Pre-calculation Other reference information related to this BPM includes: Other ISO BPMs ISO Tariff (issued 2/9/06) ISO Tariff compliance filing (filed November 20, 2006) ISO Tariff compliance filing December 20, 2006) ISO Tariff (March 22 filing) ISO Tariff compliance filing (filed June 18, 2007) Relevant Attachments BPM Configuration Guides Overview Welcome to the Overview section of the BPM for Reliability Requirements. In this section you will find the following information: A list of the general objectives for resource adequacy at ISO A description of the basic elements of a capacity-based resource adequacy program An explanation of general factors used to assess needed resource levels to satisfy reliability requirements High-level overview of annual and monthly resource adequacy reporting requirements Objectives Market economics and reliability are inextricably intertwined. Even markets that are otherwise competitive and robust may nevertheless fail if they do not provide sufficient incentives to
Table 1 Illustrative Resource Transition Timing Scenarios Table 1 Illustrative Resource Transition Timing Scenarios No. Submitted to ISO Physical Boundary Change Occurs Possible Bilateral Transfer of RA Import Capacity Eligible for NQC as Resource Transition Historical Data Used 1 May 2011 Nov 2011 Nov-Dec 2011 2012 2009 & 2010 2 May 2011 Feb 2012 Feb-Dec 2012 2013 2010 & 2011 3 Sep 2011 Aug 2012 Aug-Dec 2012 2013 2010 & 2011 Net Qualifying Capacity Report ISO Tariff Section 40.4.2 ISO produces a listing setting the NQC of all Participating Generators and other Generating Units that request inclusion through their respective SCs. The values in this Net Qualifying Capacity (NQC) report are used by ISO for: Deliverability studies capacity studies Validation of LSE Resource Adequacy Plans Validation of Supply Plans This report is posted on the ISO Website under the title of Current NQC and LCR Data at: The posted NQC report is updated, if necessary, by the 20th of each month or first Business Day thereafter. However, the NQC report posted in June of each year as set forth in a ISO Market Notice is deemed the “annual” NQC report for purposes of Section 40.4.2 of the ISO Tariff. This annual NQC report, once posted, identifies the Net Qualifying Capacity of listed resources for the next RA Compliance Year. The CPUC
System Resources (ISO Tariff 40.6.2, 40.6.3, 40.6.5.1). Non-Dynamic, System Resources (i.e. imports) Same bidding requirement as above (ISO Tariff 40.6.1). Same bidding requirement as above (ISO Tariff 40.6.1, 40.6.5). Economic Bids or are to be submitted for any remaining RA Capacity from resources scheduled in IFM or RUC. No RTM Bids or Self-Schedules are required for resources not scheduled in IFM or RUC (ISO Tariff 40.6.2, 40.6.3). Yes (1) Non-Dynamic , System Resources (i.e. imports) Economic Bids or are to be submitted for all RA Capacity consistent with inter-temporal constraints such as multi-hour run blocks or contractual limitations (e.g. 6 X 16). (ISO Tariff 40.6.1, 40.6.8.1, 40.8.1.12.2). Economic Bids or must be submitted under the Resource ID registered as an RA Resource on RA Supply Plan. Same bidding requirement as (ISO Tariff 40.6.1, 40.6.5). RUC Availability Bids must be submitted under the Resource ID registered as an RA Resource on RA Supply Plan. Economic Bids or are to be submitted for any remaining RA Capacity from resources scheduled in IFM or RUC. No RTM Bids or Self-Schedules are required for resources not scheduled in IFM or RUC (ISO Tariff 40.6.2, 40.6.3). Yes (1) Non-Hydro and Dispatchable Use-Limited Resources Economic Bids or are to be submitted for all RA Capacity for all hours unit is capable of operating consistent with the use-limitations described in unit’s RA Capacity from Eligible Intermittent $0/MW RUC Availability Bids are to be submitted for all RA capacity for all hours unit is capable of operating consistent with the use-limitations described in unit’s RA Capacity from Eligible Intermittent Resources is not Economic Bids or are to be submitted for any remaining RA Capacity from resources scheduled in IFM or RUC, consistent with the use-limitations described in unit’s Energy Bids or No (2) Specific
(GT without limited fuel storage) No Gas-Fired with environmental restrictions that constraint its operation Yes Hydro-Large Storage Yes/No - although Hydro with large amount of storage may have more flexibility to generate on demand and thus may not be use-limited in a manner similar to a run-of-the river, downstream water flow and water-release needs and other environmental conditions may dictate output so as to warrant status Storage/Small Conduit Yes Hydro-Run of the River Yes Wind Yes Solar Yes Nuclear Yes QF Yes Resource with Contractual Limitation that Limits Availability No The ISO may allow a Resource Adequacy Resource that is subject to temporary or seasonal environmental restrictions imposed by federal or state law or regulation to be designated as a Use-Limited Resource for the period in which the restriction applies. Temporary environmental Use-Limited Resource status will begin on the start date of the restriction and end on the end date of the restriction, and may include a partial month or full month for Resource Adequacy purposes. A Resource Adequacy Resource may request temporary environmental Use-Limited Resource status by submitting the application required by this section and including a detailed explanation of the temporary or seasonal environmental restriction that is the basis for its request. As with annual Use-Limited Resource status, a contractual limitation or economic reason will not qualify a Resource Adequacy Resource for temporary environmental Use-Limited Resource status. Use-Limited Resource registration can occur at any time. Within five days of the receipt of the application, the ISO responds to the Scheduling Coordinator as to whether or not the ISO agrees that the resource is eligible to be a Use-Limited Resource. If ISO determines the facility is not a Use-Limited Resource, the Scheduling Coordinator may challenge that determination in accordance with ISO ADR Procedures.
In this example, Assume the resource has 100 MW of RA Capacity The ISO first evaluates Forced Outage subject to SCP outage availability, which equals 50 MW OF1 curtailment divided by 100 MW RA Capacity, or 50%. Then ISO then calculates the RA Capacity subject to SCP, which equals 100 MW RA Capacity minus the 50 MW of OF2 capacity not subject to SCP, or 50 MW. Finally, ISO then calculates the availability MW for this resource this hour, which equals 50% of the 50 MW RA Capacity subject to SCP, or 25 MW. Example 3: Resource availability and SCP availability calculation per hour with forced outage not subject to SCP Resource has a Pmax of 100 MW Evaluate 1 of the assessment Resource has two Forced Outages OF1 is a Forced Outage subject to SCP that curtails the resource by 50 MW for the first 30 minutes of the hour. OF2 is a Forced Outage not subject to SCP that curtails the resource by 100 MW for the last 18 minutes of the hour. In this example, the resource curtailment due to forced outage OF1 will be 25 MW and the resource curtailment due to Forced Outage OF2 will be 30 MW. The 30 MW associated with the outage OF2 will not be included it in the resource availability calculation. The ISO will consider the resource as available for 75 MW this hour (75 = 100 - 25, or Pmax minus forced outage subject to SCP outage curtailment). In the scenario where the resource has MW not subject to the SCP calculation, the ISO will first evaluate the Forced Outage subject to SCP outage availability, which equals the Forced Outage subject to SCP availability divided by the RA capacity. It will then calculate the capacity subject to SCP, which equals the RA capacity of the resource minus the curtailment value not subject to SCP for the hour. Finally, it will calculate the availability MW for the resource for this hour by comparing the Forced Outage subject to SCP outage availability percentage to the capacity subject to SCP, which equals the Forced Outage subject to SCP outage availability percentage multiplied by the RA capacity subject to SCP. In this example, Assume the resource has 100 MW of RA Capacity.
SCP Grandfathering Notification Process Some generators provide RA capacity under a contract that has been “grandfathered” by the ISO under Tariff Section 40.9.2 or 40.9.3, which exempts that RA capacity from the SCP non-availability charges and availability incentive payments during the initial contract term. Scheduling Coordinators for generators with a grandfathered contract must notify the ISO through the annual SCP grandfathering notification process whether the grandfathered contract has been re-assigned, undergone novation or amendment, terminated, or remains unchanged. The ISO will publish a Market Notice by the first week of October advising all Scheduling Coordinators that they must submit a description of any changes made to the terms of a grandfathered contract by the due date indicated in Exhibit A-1. If the generator owner seeks to continue the grandfathered status of the contract for the following trade year, then the Scheduling Coordinator for the generator must submit an affidavit executed by an executive officer or member of senior management of the generator owner or of the Scheduling Coordinator itself, who is authorized to bind the company legally and financially, and sworn under oath or affirmation that the contract meets the criteria in Tariff Sections 40.9.2(2) or 40.9.2(3) to continue to be exempt from the SCP non-availability charges and availability incentive payments. A Scheduling Coordinator may submit one affidavit for multiple generating resources holding a grandfathered contract provided the affidavit clearly specifies the resources and contracts to which the affidavit pertains. The affidavit must identify the grandfathered contract ID(s) and associated resource ID(s). If grandfathered contracts have been re-assigned, undergone novation or amendment, or terminated at any time between annual notifications, the Scheduling Coordinator representing the generator with the existing Resource Adequacy contract must promptly notify the ISO to continue the exemption for the remainder of the trade year. Scheduling Coordinators must submit required information to the standard capacity product mailbox at . All notifications submitted by Scheduling Coordinators must include at a minimum: The affidavit as described above, The grandfathered contract ID(s), and The resource ID(s) associated with the grandfathered contract(s).
Tariff Section 43.2.5.2.3 Subsequent Exceptional Dispatch Example of Second CPM occurring in the first month Example of Second CPM occurring in the first month Pmax: Limit of CPM NQC: Not used in CPM Pmin: RA is above Pmin Month A: First CPM all the same rules apply Second CPM Month A Incremental CPM: Second CPM Dispatch Level – (Any Existing CPM, Month A RA, or other Contracts) Second CPM Month A Retroactive Days: Date Second CPM was called – First CPM Start Date Second CPM Month A Days: End of first CPM Date – Date Second CPM was called Month B: First CPM all the same rules apply, all three cases above establish Month B CPM Level Second CPM Month B Incremental CPM: To determine the Second CPM Dispatch Level follow the same rules as the first CPM Dispatch level – (Any Existing CPM, Month A RA, or other Contracts) Second CPM B Days: End of First CPM Date – First of Month B Tariff Section 43.2.5.2.3 Subsequent Exceptional Dispatch Example of Second CPM occurring in the second