Regulatory must-take generation (completed)

Outcome: Effective December 2012, combined heat and power resources that are no longer subject to a grandfathered power purchase agreement can retain a higher regulatory must-take generation scheduling priority for the capacity dedicated to their industrial hosts. — Implementation: Dec. 3, 2012; FERC approval: Nov. 30, 2012; Tariff amendment filing: Sept. 17, 2012 (ER12-2634); Board of Governors approval: May 16, 2012

The ISO plans to revise its tariff definition of regulatory must-take generation related to combined heat and power resources to make it more applicable to facilities capable of producing electricity in conjunction with their industrial processes and thermal energy uses. The new definition will allow combined heat and power resources to establish a capacity level eligible for regulatory must-take generation scheduling priority even though the resource is no longer subject to a grandfathered power purchase agreement. The ISO will also clarify that once grandfathered power purchase agreements have terminated resources will be required to comply with the ISO tariff. Current policy exempts facilities with grandfathered power purchase agreements from complying with the ISO tariff.