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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
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.—Implementation date: April 1, 2011; FERC Order: March 17, 2011; Board of Governors approval: Nov. 1, 2010
Capacity procurement mechanism - papers and proposals
Capacity procurement mechanism - tariff language
Comments on revised draft final proposal
Comments on draft final proposal
Comments on straw proposal
Comments on issue paper
Comments on second draft tariff language
Comments on draft tariff language
Meeting 23-Aug-2010
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