Capacity Procurement Mechanism

The California ISO is conducting a stakeholder process to design the Interim Capacity Procurement Mechanism and Exceptional Dispatch replacement tariffs before the current ones expire on March 31, 2011. The ISO will present a proposal to its Board of Governors during the November 2010 Board meeting to comply with a FERC filing deadline of 120 days before the sunset date. The proposal to the Board will likely contain these elements: successor to the ICPM tariff, update of exceptional dispatch pricing, and extension of bid mitigation for Exceptional Dispatch.

Outcome

Board of Governors approval: November 1, 2010
FERC Order: March 17, 2011
Implementation date: April 1, 2011

On April 1, 2011 the ISO implemented a new capacity procurement mechanism to replace the Interim Capacity Procurement Mechanism, updated the price paid for capacity and extended bid mitigation applicable to exceptional dispatches. The ISO also added new features to procure capacity needed for reliability when a resource is at risk of retirement, as well as criteria to select resources to help manage variability. The new capacity procurement mechanism procures capacity that is not already designated as resource adequacy capacity and is obligated to be available to the ISO for scheduling and dispatch comparable to the obligations of resource adequacy capacity.

Policy development

Tariff development

Release planning

Implementation