Generated bids and outage reporting for non-resource specific RA resourcesSuppliers of Resource Adequacy (RA) capacity have the obligation to bid that capacity into the California ISO market. The ISO therefore has Tariff authority to insert generated bids for RA resources that fail to bid into the market. There are gaps in this process, however, when it comes to the case of system (or import) resources that are not resource-specific but do have RA contracts (NRS-RA resources). Through this stakeholder effort, the ISO will work with market participants to address two issues required for implementing insertion of generated bids for NRS-RA resources that fail to offer into the ISO markets. The first issue is the question of what bid price to insert for automatically generated bids, and the second is that of outage reporting for these resources.
Generation interconnection cluster 4 phase 1 methodologyThe ISO is considering an alternative methodology to the phase 1 network upgrade analysis used to assess the cost ceiling and posting requirements for interconnection cluster 4 generation. The alternative methodology under consideration will not impose a limit on the amount of generation that actually proceeds through phase 2. The current methodology, if applied, would lead to unrealistic results because of the significant volume of interconnection requests received in the cluster 4 window, which closed on March 31, 2011. No change in methodology is expected for the phase 2 analysis and all generation that advances from cluster 3 and 4 phase 1 will be studied together in the cluster 3 and 4 phase 2 process.
Generation interconnection process reformOn December 11, 2007, the Federal Energy Regulatory Commission held a nationwide technical conference to address challenges affecting the current queue management process adopted by Order No. 2003 and to explore possible reforms. The California ISO, as well as other ISOs and RTOs across the country, identified issues hindering the efficient implementation of the current queue management process. As a result of the California ISO's participation at the technical conference, FERC expressed a desire for the California ISO to propose any necessary reforms by Spring 2008. In accordance with the FERC directive, the ISO is initiating a stakeholder process to evaluate potential queue management reforms. To the extent ISO Tariff changes are necessary to implement any identified reforms, the ISO anticipates seeking its Board of Governors approval prior to submission to FERC for acceptance.
Generator contingency and remedial action scheme modelingThis initiative focuses on required enhancements to the day ahead and real time markets to support generator contingencies. The final proposal should result in an economic dispatch that will respect all emergency limits after the loss of a generating unit alone or due to remedial action scheme operation without the need for out-of-market intervention.
Generator interconnection and deliverability allocation procedures reassessmentThis initiative will examine topics that arose following the first annual reassessment of the generation interconnection and deliverability allocation procedures. These topics include potential adjustments to cost caps and interconnection financial posting requirements resulting from a reassessment, and possible use of forfeited funds from interconnection customer project withdrawals to offset financial impacts on remaining customers in the queue and applicable participating transmission owners.
Generator interconnection driven network upgrade cost recoveryThe ISO tariff requires Participating Transmission Owners (PTOs) to reimburse generator interconnection customers for certain network upgrades. These network upgrade costs are included in their customer rate bases through transmission access charges. Customers of PTOs with a relatively small rate bases could experience significant rate increases from generator driven low voltage network upgrades. This initiative will explore potential changes to the current network upgrade cost recovery mechanism.
Generator interconnection procedures
Generator interconnection procedures cluster 1 and 2 deliverability concernsA number of stakeholders have raised concerns that the long development timelines and high costs of network upgrades in adjacent PTO service territories identified for certain Cluster 1 and 2 generation interconnection projects will impede the commercial viability of these projects. The identified need for these upgrades is related to the high volume of generation that was included in the Cluster 1 and 2 phase 2 studies.
Generator interconnection procedures phase 2On Dec. 16, 2010, the Federal Energy Regulatory Commission conditionally approved tariff provisions to the generator interconnection process known as Generator Interconnection Procedures. In phase 1, these new procedures combined the small and large interconnection process into a single cluster approach and streamlined the timelines under the study process. Phase 2 addresses carryover issues from Phase 1 and other issues that encompass generator technical specifications, information accessibility, non-conforming large generator interconnection agreement provisions, study assessment methodology and posting requirements.
Generator interconnection procedures phase 3The ISO has deferred this initiative and will instead focus its efforts on generator project downsizing through a separate initiative based on stakeholder comments and priorities. A revised Phase 3 schedule will be announced later in 2012.
Generator project downsizingThis initiative will explore additional opportunities for customers in cluster 4 and earlier in the generator interconnection study queue to downsize the capacity of their projects.
Generator reliability communication protocolA number of North American Electric Reliability Corporation (NERC) Mandatory Reliability Standards require a GO to convey critical status information and “changes to capabilities and characteristics” directly to its Balancing Authority (the California ISO), Transmission Operator (TOP) and Reliability Coordinator (the CMRC) without any intentional time delay. However, generators currently send all required information to their Scheduling Coordinators (SCs) (i.e., PG&E, SCE and SDG&E) and these entities aggregate the information and subsequently submit it to the California ISO and California/Mexico Reliability Coordinator (CMRC).
The NERC and Western Electricity Coordinating Council (WECC) compliance audit requirements require a reasonable audit trail attesting that the Reliability Standards are being met. Therefore, the California ISO will hold two stakeholder meeting/workshops to ensure that, for the purposes of NERC/WECC desktop audits, GOs are able to provide documentation that the aggregated information submitted to their responsible SCs has been appropriately submitted to the California ISO. In order for the entities to be able to account for the submission of this information, the communication documentation should be established and published.
Therefore, the California ISO will hold a workshop to facilitate agreements between GOs and TOPs. Such agreements will formally establish standardized communication protocols that can be published and used for potential NERC/WECC audits.
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