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    • Capacity markets
      Over the last few years, California has designed and implemented a new resource adequacy program. A key next step in the resource adequacy evolution is to determine whether a capacity market would be a beneficial complement to the phased-in resource adequacy plan, and if so, what are the appropriate attributes of a capacity market.
    • 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.
    • Capacity procurement mechanism designation of Sutter Energy Center
      This stakeholder process is to receive comments on an ISO analysis of a request made by Calpine on Nov. 22, 2011 asking the ISO to designate its Sutter Energy Center as needed under the Capacity Procurement Mechanism (CPM). Without the designation, Calpine will retire the plant for economic reasons and any future repowering of the facility is highly unlikely. The ISO has determined that the plant is needed in the 2017-2018 period to meet reliability and operational needs in the ISO balancing authority. As a result, the ISO will ask the Federal Energy Regulatory Commission for a tariff waiver that would enable the Sutter plant to receive a CPM designation, however, the ISO commits to initiating a stakeholder process in 2012 that will develop a longer-term solution.
    • Capacity procurement mechanism replacement
      This initiative will design a capacity procurement mechanism to replace the current one that expires Feb. 16, 2016. The proposal will include a durable mechanism and market-based price for the ISO to procure capacity not designated for resource adequacy in order to meet reliability needs. The ISO plans to present a proposal to its Board of Governors in the first quarter of 2015.
    • Capacity procurement mechanism risk-of-retirement process enhancements
      The ISO backstop procurement is currently limited to resources that do not receive a resource adequacy contract for the upcoming year. Resource owners believe this is a problem because they do not know whether they will have a contract until October 31 of the current year. This initiative will consider whether an analysis can take place prior to Oct. 31.
    • Central counterparty exception for self-supply
      The ISO filed tariff revisions in compliance with FERC Order No. 741 to become a central counterparty effective Sept. 1, 2012. This initiative proposes a limited exception to the ISO status as a central counterparty to address concerns raised by a number of municipal utilities that it could jeopardize the tax-exempt status of their bonds.
    • Circular scheduling
      Circular scheduling occurs when the power scheduled for export from the source balancing authority returns back to the original scheduled import point and no power actually flows (source and sink remain the same). A market participant can unduly profit from this practice while creating potential operational issues arising from a mismatch between scheduled versus actual flows. Following stakeholder discussion, the ISO will consider clarifying existing market rules.
    • Commitment cost enhancements phase 1
      The ISO implemented tariff changes that: 1) allow the ISO, in the event of a significant price spike, to execute and settle the market using a gas price published on the morning of the day-ahead market run rather than the prior evening’s calculated gas price index; 2) increased the existing proxy cost bid cap from 100 percent of the resource’s calculated proxy cost to 125 percent; and 3) eliminated the registered cost option for all resources except use-limited resources. FERC directed the ISO to submit an informational report concerning the impact of these changes on longer term market design changes for commitment costs by Aug. 1, 2015.
    • Commitment cost enhancements phase 2
      On Nov. 1, 2016, the ISO implemented tariff and policy changes to clarify the transition cost calculation definition and provide guidelines on how it will be calculated.
    • Commitment cost enhancements phase 3
      Effective April 1, 2019, the ISO activated system changes to calculate use-limited resource opportunity costs and create opportunity cost adders for bidding into the ISO market using the proxy cost option. Effective May 1, 2019, the calculated Opportunity Cost Adders are available for use in the ISO markets. This implementation improves the management of use limited resources by allowing translation of most cases into standard limitations, therefore reducing the amount of cases requiring negotiation of opportunity costs.
    • Commitment costs refinement 2012
      Through this initiative, the ISO will evaluate several more opportunities to further improve the specification of start-up and minimum load costs. The ISO plans to weigh changes to the proxy minimum load cost option to consider the following: 1) costs due to the upcoming greenhouse gas “cap-and-trade” program in California; 2) costs associated with operational flow orders in the natural gas market; and 3) the cost of the grid management charge into minimum load costs. The ISO also will evaluate changes to the registered cost option cap for start-up and minimum load costs, a fixed adder to proxy start-up calculations to cover major maintenance expenses, and additional issues related to commitment costs as requested by stakeholders.
    • Commodity Futures Trading Commission related initiatives
      The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2012 expanded the authority of the Commodity Futures Trading Commission (CFTC) in a way that could be interpreted to cover certain transactions in ISO and RTO markets. The ISO is working with stakeholders through these initiatives to clarify and implement any changes required by the Act.
    • Communications and roles under mandatory reliability standards
      The California ISO (the ISO) has entered into Reliability Standards Agreements (RSAs) with the three interconnected utilities, which include Southern California Edison (SCE), Pacific Gas & Electric Company (PG&E), and San Diego Gas & Electric Co. (SDG&E). These agreements allocate the responsibilities to the signatories for compliance as the Transmission Operator (TOP) with NERC mandatory Reliability Standards.
    • Competitive solicitation process enhancements
      This initiative is the latest in a series of stakeholder processes conducted over the past several years to review and improve the Phase 3 competitive solicitation procedures of the ISO transmission planning process. The ISO and stakeholders will use lessons learned from the 2012-2013 process to identify potential enhancements that improves the efficiency and effectiveness of the process.
    • Competitive transmission improvements
      This initiative will consider improvements that support competition in the ISO transmission planning process for approved project sponsors who are non-participating transmission owners. The ISO is also proposing a new project sponsor application deposit to help mitigate costs incurred while performing and administering the competitive solicitation process.
    • Congestion revenue rights clawback rule modification
      The Congestion Revenue Rights (CRR) rule treats a day-ahead intertie award that is reduced in real-time as a “virtual award.” If the real-time reduction to a day-ahead intertie award exceeds 10% of the transmission capacity, then 100% of revenues on the CRRs are clawed back, discouraging rebidding into the 15-minute market. This initiative will explore which transactions should be considered “virtual awards” subject to clawback.
    • Congestion revenue rights initiative - 2004-2006
      FERC's approval of the Feb. 2006 tariff filing in support of the California ISO's new market design, and several subsequent filings and associated orders, established the policy for Congestion Revenue Rights in the ISO's current market. The ISO has released short-term and long-term CRRs for the start of its new market design through the allocation and auction processes for CRRs that have been in effect since April 1, 2009. The ISO is now conducting both annual and monthly CRR allocation and auction processes for the release of prospective CRRs. Experience with these production related activities has allowed the CAISO to propose new initiatives to further improve our processes.
    • Congestion revenue rights initiative - 2007
    • Congestion revenue rights initiative - 2008
    • Congestion revenue rights initiative - 2009
    • Congestion revenue rights 2009-2010 enhancements
      In conducting its annual and monthly Congestion Revenue Rights allocation and auction processes for release of prospective CRRs, the ISO has identified credit and non-credit issues as candidates for further refinements. The ISO is revising the current credit requirements for CRR auction participation to improve the ISO’s credit coverage and efficiency of collateral usage and to facilitate participation in the auctions. The ISO is resolving the following non-credit issues: • Revise load migration process • Revise modeling and treatment of trading hubs in CRR allocation • Eliminate multi-point CRRs from CRR design • Add a weighted least squares objective function • Refine tiers in monthly allocation
    • Congestion revenue rights 2011 enhancements
      Congestion Revenue Rights (CRRs) are financial instruments that enable market participants to manage the risks associated with congestion costs in the energy market. The purpose of the 2011 CRR Enhancements initiative is to streamline current processes, which includes simplifying load migration, improving revenue adequacy, streamlining allocation to load, and addressing minor issues that require tariff clarification.
    • Congestion revenue rights tariff clarification 2012
      The ISO proposes tariff clarifications for Congestion Revenue Rights (CRR) processes concerning the priority nomination process, seasonal eligibility quantity calculations, secondary registration, CRR PNode retirement, and credit requirements for load migration and merchant transmission. Some of these changes will impact the upcoming 2013 annual CRR process. This initiative seeks to better align the tariff and business processes.
    • Consolidated Energy Imbalance Market initiatives
      This new initiative combines three EIM initiatives from the ISO 2017 Roadmap. The initiative will investigate if third party transmission owners located between two EIM balancing areas (BA) can provide available capacity to these entities for EIM transfers. It will also examine if current wheel through functionality can be used to manage bilateral schedule changes that either source or wheel across the EIM footprint. And finally, this initiative will explore equitable sharing of benefits when an EIM transfer wheels through an EIM BA.
    • Consolidated Energy Imbalance Market initiatives
      This new initiative combines three EIM initiatives from the ISO 2017 Roadmap. The initiative will investigate if third party transmission owners located between two EIM balancing areas (BA) can provide available capacity to these entities for EIM transfers. It will also examine if current wheel through functionality can be used to manage bilateral schedule changes that either source or wheel across the EIM footprint. And finally, this initiative will explore equitable sharing of benefits when an EIM transfer wheels through an EIM BA.
    • Contingency dispatch enhancements
      The ISO proposes to give dispatch priority during a disturbance control standard event to energy bids from resources providing operating reserves. Currently, the ISO dispatches energy in economic order and observes that resources providing operating reserves respond more accurately and quickly than energy-only resources. The proposed change reduces the risk of not recovering from a disturbance event due to insufficient response.
    • Contingency reserve cost allocation
      This initiative will propose modifications to the cost allocation of contingency reserves. The initiative will seek to align the cost allocation with WECC’s new standard for calculating contingency reserve requirements for balancing authority areas effective October 1, 2014.
    • Convergence bidding
      Convergence (or virtual) bidding is a mechanism whereby market participants can make financial sales (or purchases) of energy in the day ahead market, with the explicit requirement to buy back (or sell back) that energy in the real time market. Virtual bids pressure day ahead and real time prices to move closer together, thus reducing the incentive for buyers and sellers to forgo bidding physical schedules in the day ahead market in expectation of better prices in the real time market. Under FERC's Sept., 2006 MRTU Order, the California ISO must implement convergence bidding within twelve months after the new ISO market startup. FERC's April 20, 2007 Order specifies that the ISO must file tariff language for the implementation of convergence bidding no later than 60 days prior to the one-year anniversary of the new market startup. Thus the ISO is seeking focused stakeholder input now to help develop the design for convergence bidding so that the necessary software features and business processes can be built to meet a reasonable implementation schedule.
    • Cost allocation guiding principles
      Through this initiative the ISO will develop a set of guiding principles on how to allocate market costs among market participants. Initially, we will apply the principles to the flexible ramping product currently under development. Later in 2012, through a follow-up initiative, we will holistically review cost allocation methodologies developed through multiple stakeholder initiatives over the past 18 months to ensure consistency with these guiding principles.