Ancillary services forced buy back (completed)

Outcome: Effective November 1, 2013 the ISO implemented system, tariff and process changes to rescind ancillary service capacity payments of resources when the ISO performs a forced buy back of ancillary service capacity that is no longer available due to the resource being limited or on outage. — Implementation: Nov 1, 2013; FERC approval: Jun 27, 2013 (ER13-707), Aug 26, 2013 (ER13-2040); Tariff amendment filing: Jan 4, 2013, Jul 26, 2013; Board of Governors approval: Jul 12, 2012

The ancillary services forced buy back mechanism reduces ancillary service awards and self-provisions by the amount that is unavailable due to transmission constraints or plant limitations. Participants whose resources are subject to forced buy backs currently retain their capacity payments, which increases the cost of ancillary service procurements. This initiative seeks to align the settlement of ancillary services forced buy backs with existing rules of unavailable ancillary service capacity.