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  • Pay for performance regulation
    FERC Order No. 755 required that the ISO modify the compensation mechanism for regulation to include a performance payment with an accuracy adjustment in addition to the existing capacity payment. The ISO has FERC approval of the proposed tariff modifications, and is conducting a one year evaluation of the methodology for calculating mileage accuracy and assessing whether the minimum performance standard and any additional items should be revised.
    • Outcome
      Effective May 01, 2013 the ISO implemented functionality to comply with FERC Order 755 for compensation of frequency regulation in organized wholesale power markets. The ISO developed a two-part structure to establish the prices for regulation capacity and mileage, which is a performance based payment. Resources that receive regulation capacity awards must also receive a mileage award and vice versa. The ISO measures a resource’s actual performance in how well it responds to a dispatch signal. — FERC approval: Jan 30, 2015 (ER15-554); Implemented: May 01, 2013; Tariff amendment filings: Dec 02, 2014 - pay for performance year one changes (ER15-554), Mar 07, 2013 - FERC Order 755 average instructed mileage (ER13-1055), Feb 27, 2013 - pay for performance (ER13-995), Apr 27, 2012 - frequency regulation compensation (ER12-1630) (ER14-971); Board of Governors approval: Nov 13, 2014
    • Pay for performance regulation - papers and proposals