Capacity Procurement Mechanism Significant Event - Intent to Solicit and Designate Capacity
The California ISO has issued a Grid Alert and a Restricted Maintenance Operations (RMO) as well as a Flex Alert calling for conservation due to a possible energy supply shortage for Oct. 1, 2020, beginning at 6 p.m. In order to address potential supply shortages during this period, the ISO is soliciting any available capacity the CAISO 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 October 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.).
The California ISO is seeking any available capacity the CAISO 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 due to the current capacity constraints 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 October. 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 intend 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 October intra-monthly CPM CSP that would like to be considered for a 30-day CPM designation should contact the ISO immediately.