Variable Operations and Maintenance Cost Review: July 2019 Working Groups
As part of the recurring variable operations and maintenance (VOM) cost review and based on input from stakeholders during the Jan. 8, 2019 VOM cost draft study call, the California ISO is further reviewing the VOM values by organizing stakeholder working groups to better understand the operations and maintenance costs incurred by resources. The ISO has scheduled five public stakeholder calls in July 2019 to conduct these working groups.
The ISO has committed to evaluate the VOM value used for commitment costs and default energy bids every three years to ensure they accurately reflect resources’ variable costs. On Dec. 26, 2018, the ISO released an initial report to update the VOM cost values and held a call on Jan. 8, 2019, to discuss with stakeholders. Taking this feedback into consideration, the ISO is offering definitions for comment and further considered VOM’s constituent components in an updated memo posted to our website. The report, updated definitions for comment, and related documents are available at http://www.caiso.com/informed/Pages/StakeholderProcesses/VariableOperations-MaintenanceCostReview.aspx.
The ISO will hold working groups with stakeholders representing different resource technologies to better understand maintenance costs incurred by resources and to field comments on the offered definitions. From the information stakeholders provide during the working groups, the ISO will be better equipped to propose VOM values that accurately reflect resources costs. The ISO does not expect stakeholders to share proprietary technology or cost information but rather information about the nature, relative magnitude, and frequency of incurrence of maintenance costs. The current default VOM values listed in tariff section 126.96.36.199.2 will remain in place until
the ISO concludes this process.
The ISO will hold the following public stakeholder calls to conduct working groups to discuss these cost categories and definitions:
Working Group 1 - Gas Resources: Includes Combined Cycle, Steam, Combustion Turbine, and Reciprocating Engine