REQUESTED ACTION

Immediate Response Requested

SUMMARY

To address system needs caused by the current heat wave across California and the western states, the California ISO is soliciting any available capacity the ISO can procure using its Capacity Procurement Mechanism (CPM) authority for significant events. Scheduling coordinators with available capacity that was not offered into the intra-monthly CPM competitive solicitation process (CSP) for August should contact the ISO immediately if they will accept a 30-day CPM designation at the CPM soft offer cap. In designating capacity (regardless of whether it was offered to the CSP), the ISO will give first preference to resources that are deliverable to the ISO (if an import) and that are available during the peak and net peak hours (2 p.m.-10 p.m.).

MESSAGE

The California ISO is seeking any available capacity the ISO can procure under its Capacity Procurement Mechanism (CPM). The ISO has authority to procure capacity to address a CPM significant event.

The ISO tariff defines a CPM significant event as a “substantial event, or a combination of events, that is determined by the CAISO to either result in a material difference from what was assumed in the resource adequacy program for purposes of determining the Resource Adequacy Capacity requirements, or produce a material change in system conditions or in CAISO Controlled Grid operations, that causes, or threatens to cause, a failure to meet Reliability Criteria absent the recurring use of a non-Resource Adequacy Resource(s) on a prospective basis.” The ISO has determined that the current record-breaking heat wave across California and other western states, combined with other operating factors, constitutes such a CPM significant event. The ISO intends to procure capacity under its CPM authority to address this significant event.

Under section 43A.4.2.1 of the ISO tariff, the ISO will first look to meet its minimum designation criteria from capacity offered to the intra-monthly CPM competitive solicitation process (CSP) for August. If there is insufficient capacity from those offers to meet the ISO’s needs, the ISO may then offer CPM designations to capacity not offered into the intra-monthly CSP. If the ISO is unable to meet its minimum designation criteria from both capacity offered and not offered in the CSP, then the ISO “may reassess and lower the minimum criteria.” The ISO intends its minimum criteria to cover capacity that is deliverable to the ISO (in the case of imports) and available during the peak and net peak hours (2 p.m.-10 p.m.). If insufficient capacity is available to meet these needs, the ISO may consider other capacity.

Any designations will be for a 30-day term, regardless of whether the capacity was offered to the CSP. Capacity that was not offered to the CSP will be compensated at the CPM soft offer cap (or at a higher price based on a resource-specific cost showing approved by the Federal Energy Regulatory Commission). Scheduling coordinators with capacity that was not offered into the August intra-monthly CPM CSP that would like to be considered for a 30-day CPM designation should contact the ISO immediately.