DECEMBER 11, 2012 MC MEETING

Robert B. Burke

Email: rburke@iso-ne.com

PRD Full Integration Conforming Changes and Fixes

Additional Changes Since Last MC Presentation

• Section I.2.2 – Definition of Demand Response Holiday

• Section III.13.7.2.5.4. Energy Settlement for Real-Time Emergency Generation

• Appendix III.E1.7

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Definition of Demand Response Holiday

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Demand Response Holiday is New Year's Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, and Christmas Day. If the holiday falls on a Saturday, the holiday will be observed on the preceding Friday; if the holiday falls on a Sunday, the holiday will be observed on the following Monday.

Section III.13.7.2.5.4

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III.13.7.2.5.4. Energy Settlement for Real-Time Emergency Generation Resources

A Market Participant with Real-Time Emergency Generation Assets associated with a Real-Time Emergency Generation Resource that is dispatched or audited pursuant to Section III.13 shall be paid or charged for demand reductions or generator output, adjusted for net supply as described in Sections III.E1.8.3 and III.E2.7.3 and for the percent average avoided peak distribution losses, at the Real-Time LMP for the Load Zone in which the Real-Time Emergency Generation Resource is located for Capacity Commitment Periods commencing prior to June 1, 2017, and at the Real-Time LMP for the Dispatch Zone in which the Real-Time Emergency Generation Resource is located for Capacity Commitment Periods commencing on or after June 1, 2017. Demand reductions or generator output eligible for payments or charges pursuant to this section shall be those produced during Real-Time Emergency Generation Event Hours or, in the case of an audit, for the period during which the ISO has requested the resource to audit.

Appendix III.E1.7

7. Demand Response Baselines

A Market Participant must establish a Demand Response Baseline pursuant to Section III.8A prior to submitting a Demand Reduction Offer for a Real-Time Demand Response Asset.

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Section I.2.2 Definitions• The August 19, 2011 filings

– Had several new definitions that become effective June 1, 2017.– Had several definitions that changed effective June 1, 2017

• Other effective date changes require these definitions to be incorporated into the tariff now.

• These definitions are:Demand Response AssetDemand Response ResourceDemand Response Resource Notification TimeDemand Response Resource Ramp RateDemand Response Resource Startup TimeMaximum ReductionMinimum ReductionMinimum Reduction TimeMinimum time Between Reductions

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Section III.8 Baseline

• There are two versions of Section III.8– One for transitional PRD – effective now– One for full integration PRD – needed Q1 2013

• III.8A– Effective for CCP before June 1, 2017

• III.8A.3(b)– Correct typo

• III.8A.4.2– Correct typo

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Section III.8B Baseline

• Effective for CCPs commencing on or after June 1, 2017

• Carry forward RTEG changes from TPRD April 13, 2012 filing

• Clarify Baseline calculation– Prior day– Present day– Next day

• Clarify more than seven of the prior 10 days

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RTEG Change Carry Forward • Carry the RTEG baseline and baseline adjustment language filed

on April 13, 2012 and approved by the FERC into the version of MR1 Section 8 that is applicable under full integration

• Maintain from transitional PRD that RTEG performance can be determined based on its Average Hourly Load Reduction or its Average Hourly Output depending on its metering configuration (relates to prior slide)

• Meter data from a RTERG dispatched for an audit or OP-4 would not automatically be used to compute the asset’s baseline for the next day of the same day type (7 of the prior 10 applies)

• The start-up time for RTEG (if using a baseline) must be specified for use in the baseline adjustment

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Section III.13 FCM• III.13 includes TPRD and PDR FI

– Effective 1/15/2013

• RTEG Metering Requirement carry forward the transitional change allowing RTEG to be metered either at the Retail Delivery Point or at the RTEG output– Very specific limitations applicable– Otherwise both RTEG output and Retail Delivery Point for facility must

be metered– Requirement III.13.1.4.3.2

• Updated references to III.8A, III.8B, III.E1, and III.E2

• III.13.1.4 – deal with early commercial date for Demand Response Capacity Resource

• III.13.6.1.5.4.2 – carry asset audits into PRD FI

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Section III.13 FCM (continued)

• For all active demand response clarify the appropriate value of the gross-up factor for:– Resources with multi-year commitment which commenced before full

integration, but is still in effect once full integration commences– Resources that clear in a FCA after full integration commences but

have an early COD that is for a transition period Commitment Period

• III.13.7.1.5– Back out change eliminating transmission factor to capacity under PRD

FI– Replace the terms “online” and “offline” for demand resources with

“reducing demand” and “not reducing demand”

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Appendix E

• Define sections E1 and E2

• Identify their effective dates

• Capitalize the term Retail Delivery Point Appendix E2

• III.E2.6 – Carry forward Threshold Price changes April 13, 2012 filing

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Schedule

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Description Date

Markets Committee (review and vote) Aug-Dec 2012

PC Vote Jan 2013

FERC Filing Jan/Feb 2013

Effective Date April/May 2013

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