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Market Notice
May 15, 2018

REQUESTED ACTION

Information Only

CATEGORIES

Legal and Regulatory

Market Operations

Planning
2019 and 2023 Local Capacity Technical Study Reports Posted

SUMMARY

The California ISO has posted the 2019 and 2023 Local Capacity Technical (LCT) study reports.  The 2019 LCT study report shows a local reliability need for Ellwood and one of the Ormond Beach units, for which notices to retire have been received.

MESSAGE

The ISO has posted the 2019 and 2023 Local Capacity Technical Study reports at http://www.caiso.com/informed/Pages/StakeholderProcesses/LocalCapacityRequirementsProcess.aspx

 

The Final 2019 Local Capacity Technical Analysis identifies a local capacity need to retain the Ellwood Generating Station and one of the generating units at Ormond Beach.  On Feb. 28, 2018, NRG California South LP, the owner of both Ellwood and Ormond Beach, submitted notices to shut down and retire these generating facilities prior to the 2019 resource adequacy (RA) year.  As a result, the ISO intends to seek a reliability-must run (RMR) designation for Ellwood and one of the Ormond Beach units at the ISO July Board of Governors meeting.

 

The ISO's intention to seek an RMR designation for these units does not bar load-serving entities from entering into bilateral contracts with Ellwood or Ormond.  In instances where a resource is both an RMR and a RA resource, the compensation available under the RMR agreement would be adjusted accordingly to ensure the absence of duplicative compensation, but the RMR agreement would be available to compensate for costs that are not recoverable under the RA power purchase agreement.


CONTACT INFORMATION

Catalin Micsa at cmicsa@caiso.com or 916-608-5704

Abhishek Singh at asingh@caiso.com or 916-351-2374

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California Independent System Operator | P.O. Box 639014 | Folsom, CA 95630 | United States