Bid cost recovery and variable energy resource settlements (completed)

Outcome: Effective October 1, 2016 the ISO implemented solutions that: (1) distinguish between residual imbalance energy due to the forecast changes and energy due to economic dispatch in settlements; (2) limit the application of the persistent deviation metric to residual imbalance energy where there were concerns of a forecast error triggering the metric, (3) remove the metric for residual imbalance energy for economically bidding variable energy resources; and (4) correct the boundary condition of the day-ahead metered energy adjustment factor for certain Pmin scenarios. — Implemented: Oct. 1, 2016; FERC approval: July 20, 2016; Tariff amendment filing: May 25, 2016 ; Board of Governors approval: July 16, 2015

The initiative explores ISO tariff solutions for settling residual imbalance energy for economically bidding variable energy resources and the persistent deviation metric broadly applied to variable energy resources. Additionally, the initiative presents refinements to the day-ahead metered energy adjustment factor. Please see the associated market issues bulletin describing residual imbalance energy settlement and ramp rate changes.