Commitment cost enhancements
This initiative is a continuation of the Commitment Cost Enhancements Phase 2 initiative and will entail developing a methodology for calculating use-limited resource opportunity costs and creating opportunity cost adders for bidding into the ISO market using the proxy cost option. Upon implementing these changes, the registered cost option will be eliminated and all use-limited resources must bid using the new methodology.
Outcome
Effective April 1, 2019, the ISO activated system changes to calculate use-limited resource opportunity costs and create opportunity cost adders for bidding into the ISO market using the proxy cost option. Effective May 1, 2019, the calculated Opportunity Cost Adders are available for use in the ISO markets. This implementation improves the management of use limited resources by allowing translation of most cases into standard limitations, therefore reducing the amount of cases requiring negotiation of opportunity costs.
Phase 3
Implemented: April 1, 2019
FERC approval: March 28, 2019
Tariff amendment filing: March 23, 2018
Board of Governors approval: March 25, 2016
Phase 2
Implemented: November 1, 2016
Phase 1
Tariff changes effective: December 30, 2014