Reactive power requirements and financial compensation
Real-time imbalance energy offset (2009)In response to inquiries by market participants regarding the real-time imbalance energy offset (Charge Code (CC) 6477) for the month of April, the California ISO conducted a review of the first monthly invoice published under the new market model launched April 1, 2009. The ISO seeks to discuss its findings with stakeholders. The imbalance energy offset is calculated by summing the settlement dollar values for the following charge codes: real-time instructed imbalance energy (CC6470), real-time uninstructed imbalance energy (CC6475), real-time unaccounted for energy (CC6474) and the Hour-Ahead Scheduling Process (HASP) energy, congestion and loss pre-dispatch (CC6051), less real-time congestion offset (CC6774). Consistent with Section 22.214.171.124 of the ISO Tariff, allocation of CC6477 is based on measured demand in pro rata share to all scheduling coordinators including Metered Sub-System operators that are not load following and have elected gross settlement.
Real-time imbalance energy offset (2011)The ISO has observed an increase in the real-time imbalance energy offset, concurrent with the February 1 implementation of convergence bidding and the April 1, 2011 bid cap increase to $1000 per megawatt hour. Through this initiative, the ISO will evaluate both the drivers of the offset and potential rate design changes of the real-time imbalance energy offset (charge code CC 6477) currently described in Section 126.96.36.199 of the ISO tariff.
Real-time market / constraint enforcementThe California ISO is proposing a modification to clarify the enforcement of constraints in the ISO market processes and the relationship of the Full Network Model to transmission constraints. The ISO proposes to make necessary clarifications to the Full Network Model function description as it relates to the ISO's transmission constraints enforcement in its market operations.
Reducing exceptional dispatchReliability requirements that cannot be resolved through the California ISO market software are met by manually issued Exceptional Dispatches. The ISO is committed to reducing reliance on Exceptional Dispatch to the extent possible. The ISO has initiated this stakeholder process to assess with stakeholders the reasons underlying Exceptional Dispatch and address what appropriate modeling or software solutions and/or market products may be developed to reduce the need for Exceptional Dispatch going forward that will and reduce reliance on Exceptional Dispatch to situations that are rare and infrequent or genuine emergencies.
Regional integration and EIM greenhouse gas compliance
Regional integration stakeholder activities
Regional resource adequacyResource Adequacy (RA) is a mandatory planning and procurement process to ensure adequate resources to serve all customers in real time. The program requires that Load Serving Entities (LSEs) meet a Planning Reserve Margin for their obligations. The program provides deliverability criteria that each LSE must meet, as well as system and local capacity requirements. Rules are provided for "counting" resources towards meeting resource adequacy obligations. The resources that are counted for RA purposes must make themselves available to the California ISO for the capacity for which they were counted. The ISO's Interim Reliability Requirements Program and the resource adequacy under MRTU tariff provisions are intended to complement the State of California's efforts to implement resource adequacy programs.
Regulatory must-take generationThe ISO plans to revise its tariff definition of regulatory must-take generation related to combined heat and power resources to make it more applicable to facilities capable of producing electricity in conjunction with their industrial processes and thermal energy uses. The new definition will allow combined heat and power resources to establish a capacity level eligible for regulatory must-take generation scheduling priority even though the resource is no longer subject to a grandfathered power purchase agreement. The ISO will also clarify that once grandfathered power purchase agreements have terminated resources will be required to comply with the ISO tariff. Current policy exempts facilities with grandfathered power purchase agreements from complying with the ISO tariff.
Reliability coordinator services rate design, terms and conditionsThis initiative will determine the necessary tariff changes to describe the rate, terms and conditions that support the ISO’s provision to become a Reliability Coordinator (RC), in compliance with federal and regional grid reliability standards. The ISO will follow its open and transparent stakeholder process with all interested balancing authorities and transmission operators in the Western Interconnection to discuss the proposed RC services.
Reliability demand response productThe Reliability Demand Response Product (RDRP) is a wholesale demand response product that enables compatibility with, and integration of, existing retail emergency-triggered demand response programs into the California ISO market and operations. This includes newly configured demand response resources that have a reliability trigger and desire to be dispatched only under particular system conditions.
Reliability must-run pump loadThe ISO seeks to create a new Integrated Forward Market scheduling priority class for pumping load with regulatory must-run requirements that no longer are protected by existing transmission contracts. The new class will ensure that these pumping load schedules are not curtailed unless there is a system contingency affecting physical transfer of energy to the pumping facilities or ISO system demand cannot be met due to a severe energy supply shortage. — This stakeholder process was suspended March 2011 to address policy constraints relevant to this initiative.
Renewable integration market and product review phase 1While protecting system reliability, state policy requires the ISO integrate more renewable energy into California's wholesale energy market. Renewable resources operate with inherent output variability, making forecasting an important and challenging consideration. Further, renewables integration requires additional operational capabilities, including additional ramping support and ancillary services and increased ability to manage over-generation conditions. Renewable energy also imposes new operating requirements, such as more frequent starts and stops and cycling of existing generation units. The ISO wholesale market redesign in 2009, along with additional planned changes for 2010-2011, improve the ISO's ability to optimize the use of existing resources and generate market-driven prices that support investment in renewable resources. The ISO is confident that the system is capable of supporting 20% renewables integration. However, as we move toward 33% RPS, we need to examine further market design changes.
Renewable integration market and product review phase 2The ISO and stakeholders are examining a range of measures that would adapt the wholesale energy markets to meet the operational requirements of renewable resources. A number of significant market and operational changes may be required depending on the megawatt quantity of renewable production as well as the particular mix of renewable resources and their locations. Given anticipated market and operational impacts, the ISO will consider as part of this initiative: near-term changes to existing market design that may provide the ISO with additional operational flexibility, and longer term market design changes in the form of new spot market and forward capacity products that will provide the needed operational characteristics from the conventional fleet for the ISO to reliably and cost-effectively integrate variable energy resources. — This initiative provides a long-term roadmap for market enhancements that will be updated through 2020 under various other initiatives.
Renewable resources integration
Replacement requirement for scheduled generation outagesThe California Public Utilities Commission will eliminate its resource adequacy replacement rule starting in 2013. At the request of the commission, the ISO will explore what market rule and tariff changes are needed to ensure that load serving entities and suppliers replace their committed resource adequacy capacity that is unavailable because of a scheduled outage.
Residual unit commitment procedure in market redesign technology upgradeThe California ISO is gathering additional data to investigate the causes of Residual Unit Commitment (RUC) availability prices seen in Market Redesign and Technology Upgrade (MRTU) market simulation to determine whether or not changes are necessary to the current RUC process prior to MRTU start-up.
Resource adequacy availability incentive mechanismThis expedited initiative identified settlement issues following the implementation of the Resource Adequacy Availability Incentive Mechanism (RAAIM). Through this initiative the ISO is proposing calculation modifications to correct the issues.
Resource adequacy initiativeResource Adequacy (RA) is a mandatory planning and procurement process to ensure adequate resources to serve all customers in real time. The program requires that Load Serving Entities (LSEs) meet a Planning Reserve Margin for their obligations. The program provides deliverability criteria that each LSE must meet, as well as system and local capacity requirements. Rules are provided for "counting" resources towards meeting resource adequacy obligations. The resources that are counted for RA purposes must make themselves available to the California ISO for the capacity for which they were counted. The ISO's Interim Reliability Requirements Program and the resource adequacy under MRTU tariff provisions are intended to complement the State of California's efforts to implement resource adequacy programs.
Resource adequacy one-for-many manual substitutionScheduling coordinators can substitute capacity for resource adequacy resources on forced outages to avoid potential availability shortfalls. The ISO is developing automated functions to resolve current system limitations preventing the substitution of a single resource for more than one resource on outage. Until the solution is deployed, the ISO proposes a manual process to accommodate this one-for-many substitution under a limited set of conditions.
Resource transitionsThe purpose of this initiative is to develop ISO Business Practice Manual (BPM) provisions for how the ISO will establish a Resource Adequacy (RA) deliverability status when a resource transitions from outside to inside the ISO balancing authority due to a change to 1) the resource's interconnection point, or 2) the ISO balancing authority boundary. These provisions will apply to resources that have previously supplied imported power but plan to establish a direct connection to the ISO grid as an internal resource. The existing ISO tariff and BPMs describe how to establish internal resource RA deliverability and how to allocate intertie RA deliverability to load-serving entities.
Review transmission access charge wholesale billing determinant
Revised transmission planning processTo help achieve the state's 33% Renewables Portfolio Standards (RPS) target, the California ISO proposes to add a new category of transmission projects that will facilitate the necessary expansion of the electric grid to support renewable resource policy objectives, as well as a transmission project evaluation process that will use commercial interest tests and other criteria to determine whether projects are eligible to receive conditional or final approval by the ISO.
Revisions to price correction requirementsThe ISO recognizes the importance of using correct prices to settle the market and the need to weigh that against price certainty. Through this stakeholder initiative the ISO will explore price correction process improvements and clarify the scope, reasons and time horizon for making after the fact corrections.
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