Capacity procurement mechanism replacement
This initiative will design a capacity procurement mechanism to replace the current one that expires February 16, 2016. The proposal will include a durable mechanism and market-based price for the ISO to procure capacity not designated for resource adequacy in order to meet reliability needs. The ISO plans to present a proposal to its Board of Governors in the first quarter of 2015.
Outcome
Effective November 2016 market-based procurement and pricing replaced the former administrative price for backstop capacity. The new procurement mechanism allows suppliers to offer local, system, and flexible backstop capacity into a competitive solicitation process to meet identified reliability needs.
Implementation: November 1, 2016
FERC approval: August 18, 2016 (ER16-897) October 1, 2015 (ER15-1783)
Tariff amendment filings: February 4, 2016 (ER16-897); May 26, 2015 (ER15-1783)
Board of Governors approval: February 5, 2015