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Home > Stay Informed > Stakeholder Processes > Commitment Cost Enhancements

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.

 

Initiative status

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

 

Market notices

Phase 3

Implementation

FERC filings and orders

Tariff development

Policy development

Workshops

 

Completed initiatives

On November 1, 2016, the ISO implemented tariff and policy changes to clarify the transition cost calculation definition and provide guidelines on how it will be calculated.
Implemented: November 1, 2016
FERC approval: November 3, 2016, September 9, 2015
Tariff amendment filing: June 5, 2015 (ER15-1875)
Board of Governors approval: March 26, 2015
  • Commitment cost enhancements phase 2 - implementation (fall 2015)
  • Commitment cost enhancements phase 2 - implementation (independent 2016 release)
  • Commitment cost enhancements phase 2 - relevant market notices
  • Commitment cost enhancements phase 2 - tariff language
  • Commitment cost enhancements phase 2 - papers and proposals
The ISO implemented tariff changes that: 1) allow the ISO, in the event of a significant price spike, to execute and settle the market using a gas price published on the morning of the day-ahead market run rather than the prior evening’s calculated gas price index; 2) increased the existing proxy cost bid cap from 100 percent of the resource’s calculated proxy cost to 125 percent; and 3) eliminated the registered cost option for all resources except use-limited resources. FERC directed the ISO to submit an informational report concerning the impact of these changes on longer term market design changes for commitment costs by August 1, 2015.
Tariff changes effective: December 30, 2014
FERC approval: December 30, 2014
Tariff amendment filing: October 1, 2014 (ER15-15)
Board approval: September 18, 2014