Bid cost recovery mitigation measures (completed)

Outcome: On May 1, 2014 the ISO implemented measures that reduce bid cost recovery payments for undelivered energy and adjust payments for bid cost recovery and residual imbalance energy for deviations that inflate payments. The ISO also separated bid cost recovery settlement for the day ahead and real time markets and changed settlements for exceptional dispatch energy and for temporary increases to a resources minimum load. — Implemented: May 1, 2014; FERC approval: Dec. 19, 2013; Tariff amendment filing: Sept. 25, 2013 (ER13-2452); Board of Governors approval: Dec. 14, 2012

In December 2011, as part of Renewables Integration Market and Product Review Phase 1 initiative, the Board approved separating the day-ahead and real-time bid cost recovery calculations. Through this initiative we will design and implement a performance metric and a check for persistent uninstructed imbalances in the bid cost recovery calculation to mitigate any adverse effects.