M A R C H 1 3 , 2 0 1 4 | N E P O O L M A R K E T S C O M M I T T E E

Janine DombrowskiJ D O M B R O W S K I @ I S O - N E . C O M | 4 1 3 . 5 4 0 . 4 4 4 8

Additional clean-up changes to support implementation

Energy Market Offer Flexibility:Conforming Rules

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Additional changes are required to support the Energy Market Offer Flexibility and NCPC Payments projects

• The ISO has identified conforming changes to the Forward Reserve Market and the Regulation Market

• The ISO is proposing to remove obsolete provisions and references and has identified some instances of defined terms which are not capitalized

• Additional changes are required to Market Rule 1, Appendix A and Appendix F

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Forward Reserve Market

• Modify the deadline for submitting offers above the Forward Reserve Threshold Price from the close of the Re-Offer Period to no later than 30 minutes prior to the start of the operating hour.

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Regulation Market

• Modify the Regulation Market rules to consider a scenario introduced by the Energy Market Offer Flexibility functionality that permits a resource to self-schedule intra hour. – A unit selected for regulation that updates its offer through an intra

hour self-schedule will have its energy opportunity cost set to zero.

• The ISO is continuing to evaluate the impacts of negative energy offers on the Regulation Market design scheduled to be implemented in May 2014.

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Additional Changes

• Remove transition provision added to provide flexibility during the interim between the current market and the hourly markets implementation. These include:– The Appendix A Cost Recovery Provisions added to the tariff by the

ISO’s August 13, 2014 filing with the Commission– The Dual-Fuel Switching Provisions added to the tariff by the ISO’s

December 19, 2013 filing with the Commission•

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Additional Changes (continued)

• Capitalize and add newly defined terms, revise terms with obsolete references and delete terms that are no longer defined.

• Remove language that is no longer required as it has been superseded by the Energy Market Offer Flexibility and NCPC Payments tariff provisions. These include:– Obsolete cancelled start credit– Obsolete references to NCPC– A participant obligation to provide non-binding forecasts of supply

offers.

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Additional Changes (continued)

• Changes to Appendix A– Correct a typographical error; Section III.A.7.2.2.(d)(iii) should be labeled as

III.A.7.2.2(e) to indicate that a cost-based Reference Level will be used when a fuel price is submitted pursuant to III.A.3.4.

– Clarify, in the newly labeled Section III.A.7.2.2(e), that a cost-based Reference Level will apply for the Operating Day or remainder of the Operating Day.

• Delete the recently added III.F.1(c) provision for Treatment of Minimum Run Time Changes in Subsequent Operating Day that is unnecessary under the Energy Market Offer Flexibility implementation. – A resource commitment to operate across an operating day boundary will

continue through the hours of the original commitment decision duration in the subsequent day, irrespective of a change to its Minimum Run Time .

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Additional changes are required to support the Energy Market Offer Flexibility and NCPC Payments projects

• The ISO is continuing to assess whether additional changes will be required to support the implementation.

• Proposed Markets Committee Schedule:– February MC – introduce additional changes– April MC – draft tariff language plus any newly identified changes– May MC (June, if substantial new items are identified) – request vote