In anticipation of a heat wave across California and the western states for trading days Sept. 5, 2020 through Sept. 7, 2020, the California ISO is seeking any available capacity the ISO can procure under its Capacity Procurement Mechanism (CPM) or under Section 42.1.5 of the ISO Tariff.
Under section 43A.4.2.1 of the ISO tariff, when procuring capacity using the CPM, the ISO will first look to meet its minimum designation criteria from capacity offered to the intra-monthly CPM competitive solicitation process (CSP) for September. 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. to 10 p.m.). If insufficient capacity is available to meet these needs, the ISO may consider other capacity. These minimum initial criteria would apply regardless of whether the ISO procures the capacity through the CPM or through its authority under section 42.1.5 of the ISO Tariff.
Any designations through either the CPM or section 42.1.5 will be for a 30-day term. Under the CPM, 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). The ISO would offer comparable compensation if it uses its authority under section 42.1.5. Scheduling coordinators with capacity that was not offered into the September intra-monthly CPM CSP that have capacity they would like to be considered for a 30-day capacity designation should contact the ISO immediately.
