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Natural gas pipeline coordination tariff modificationsThe ISO is proposing draft tariff language to clarify the policies on sharing information about forced and unforced generation and transmission outages with utilities operating natural gas pipelines in order to ensure that pipeline outages will not undermine reliable operation of the grid.
Natural gas pipeline penalty recoveryThis initiative will consider extending the 2012 Board-approved commitment cost policy to include emergency conditions when ISO and pipeline owner operators are coordinating for reliability reasons. The current policy allows generators to seek recovery of natural gas pipeline penalties, such as those associated with PG&E’s operational flow orders, only in limited, non-emergency circumstances through the ISO bid cost recovery mechanism.
NERC reliability standardsOn June 4, 2007, mandatory reliability standards adopted by the Federal Energy Regulatory Commission (FERC) and administered by the North American Electric Reliability Corporation(NERC) and the Western Electricity Coordinating Council (WECC) for the bulk power system will become effective. Instances of non-compliance with these standards can result in monetary penalties levied against the party causing the standard violation. As part of the standards implementation process, the California ISO and a stakeholder working group have developed clarifying tariff language and a pro forma agreement addressing both the allocation of compliance tasks and responsibilities between the California ISO and the transmission owners/operators, and the recovery of penalties stemming from non-compliance situations.
Non-generator resources in ancillary services marketThis stakeholder initiative is for compliance with FERC Order Nos. 719 and 890. FERC Order No. 719, Wholesale Competition in Regions with Organized Electric Markets, directs Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) to allow demand response resources to participate in Ancillary Service (AS) Markets assuming the demand response resources are technically capable of providing the ancillary service within response times and other reasonable requirements adopted by the RTO or ISO. FERC Order No. 890, Preventing Undue Discrimination and Preference in Transmission Service, requires that non-generation resources such as demand response must be evaluated on a comparable basis to services provided by generation resources in meeting mandatory reliability standards, providing ancillary services and planning the expansion of the transmission grid.
Operations and maintenance cost adder review and updateAs an outcome of the bidding and mitigation of commitment costs initiative (phase 2), the California ISO is initiating the first re-evaluation of the operations and maintenance cost adder used for proxy minimum load costs and default energy bids to make sure they still reflect resources’ variable operations and maintenance costs. The ISO will communicate the study methodology and resulting recommendations for updated operations and maintenance values through a stakeholder implementation forum and stakeholders will have the opportunity to provide comments. The first update to the default operations and maintenance cost adder is targeted for implementation on April 1, 2012. Re-evaluations take place every three years.
Outage management system replacementThe ISO will replace its existing outage management system with one that has enhanced modeling capabilities and simplifies our business processes to improve the accuracy and efficiency of managing outages. The system is targeted for implementation in October 2014, at which time the Scheduling and Logging for ISO of California (SLIC) application will no longer be used for managing outages.
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