FERC Order 1000 compliance - phase 1The ISO is modifying its tariff to incorporate the regional requirements specified by FERC Order No. 1000. Through Phase 1 of this initiative the ISO developed with stakeholders the necessary tariff amendments to comply with the regional requirements of FERC Order No. 1000 for planning and cost allocation, and non-incumbent transmission developers. The ISO must make its compliance filing with FERC by October 11, 2012.
FERC Order 1000 compliance - phase 2The ISO is modifying its tariff to incorporate the interregional requirements specified by FERC Order No. 1000. Through phase 2 of this initiative, the ISO is working with its stakeholders and the neighboring regional planning entities to develop common provisions to comply with the interregional requirements of FERC Order No. 1000 for transmission coordination and cost allocation. These provisions must be incorporated into each region’s open access transmission tariff. The ISO must make its compliance filing with FERC by April 11, 2013.
FERC Order No 764 market changesThrough this stakeholder initiative, the ISO proposes a new 15-minute scheduling option in the real-time market to comply with FERC Order No. 764, which requires us to offer intra-hourly transmission scheduling. We will also explore implementing financially binding 15-minute schedule settlements, which will reduce barriers to integration of variable energy resources and address other identified market inefficiencies.
Flexible capacity procurementThe ISO will need sufficient flexible capacity to reliably operate the grid as additional variable resources come on line to meet the state's 33% renewable target. This initiative explores short and long-term changes to the ISO backstop procurement authority so the ISO can procure the upward and downward ramping capacity required to accommodate sudden output changes inherent in variable resources, such as wind and solar.
Flexible capacity requirementsThis initiative will establish an annual technical study process to determine the flexible capacity needed that guides resource adequacy procurements for 2015 and at least three years beyond.
Flexible ramping constraintImplementation of a new flexible ramping constraint in the market optimizations will help ensure sufficient ramping capability is available to meet conditions in the five-minute market interval when conditions have changed from the assumptions made during the prior procurement procedures. Enforcement of the constraint can produce opportunity costs for resources that resolve the constraint. Through this initiative the ISO and stakeholders will address how to appropriately compensate resources that resolve the constraint.
Flexible ramping productIn August 2011, the California ISO Board of Governors approved the flexible ramping constraint interim compensation methodology. At that time the ISO committed to begin a stakeholder initiative to evaluate the creation of a flexible ramping product that will allow the ISO to procure sufficient ramping capability via economic bids. Through this initiative, the ISO will evaluate allocating costs to generation and load in accordance with cost causation principles.
Flexible resource adequacy criteria and must offer obligationsThis initiative will explore further enhancements to flexible capacity requirements to help address generation oversupply and ramps less than three hours. This effort also seeks new rules to allow intertie resources and storage resources’ not operating under non-generator resource provisions to provide flexible capacity. Through this effort we will also assess the impact of merchant variable energy resources on flexible capacity requirements.
Frequency responseThis initiative will explore how to ensure acceptable dynamic response to frequency changes during the initial seconds to one minute following a large disturbance, which is critical for system reliability. Frequency response is provided by turbines and frequency responsive load. The system’s ability to respond sufficiently and quickly protects equipment by limiting the magnitude of the disturbance.
Full network model expansionThrough this initiative, the ISO will expand its full network model to more effectively balance the grid with external balancing authority areas and improve reliability and market solution accuracy, consistent with FERC and NERC recommendations following the September 8, 2011 southwest power outage. The proposed solution includes enhanced 1) loop flow modeling; 2) security analysis; 3) high voltage direct current transmission modeling; and 4) outage analysis and coordination.
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