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Manual M-RPA Intermittent Resource’s SCC for ARA3. Cal Bowie Northeast Utilities June 2010. Market Rule 1 Treatment of Intermittent Resources for ARA3.
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Manual M-RPAIntermittent Resource’s SCC for ARA3 Cal Bowie Northeast Utilities June 2010
Market Rule 1 Treatmentof Intermittent Resources for ARA3 "III.13.4.2.1.2.2.2.1. Summer ARA Qualified Capacity. For the third annual reconfiguration auction associated with a Capacity Commitment Period, the Summer ARA Qualified Capacity of an Intermittent Power Resource shall be the sum of the values determined pursuant to subsections (a) and (b) below: • For capacity that has achieved Commercial Operation, the lesser of its summer Qualified Capacity as determined for the Forward Capacity Auction for that Capacity Commitment Period and its summer Seasonal Claimed Capability value in effect after the most recently competed summer period.“
Old Manual 20 – SCC Value • Section D4.2 Forward Capacity Market • Monthly ratings that reflect variations in stream flow conditions are calculated for daily cycle hydro (DCH) units. Those monthly ratings are subsequently used to calculate Summer and Winter Claimed Capabilities. • DCH capability calculations will utilize daily mean river flow rate data, over a 20 year historical period. • Supplement B2 provided greater detail about the Capability Calculations for Daily Cycle Hydro Generators for the Forward Capacity Market. • Manual 20 covered other Intermittent Resources individually as well, but they are covered collectively in M-RPA.
New Manual M-RPA(Registration and Performance Auditing) • Section 2.1(2) • The SCC of Intermittent Power Resources assets will be determined consistent with the procedures for calculating qualified capacity for Intermittent Power Resources in Market Rule 1, using the median of net output for the most recently completed Summer Capability and Winter Capability Periods across the Summer and Winter Intermittent Reliability Hours, respectively.
The Problem • If there is a significant decrease in the SCC value of an intermittent resource due to uncontrollable weather conditions in the previous year, then the resource owner will be responsible for covering that decrease in the third ARA. • This is not consistent with the calculation of Qualified Capacity in Market Rule 1 which intentionally looked at multiple years to dampen year to year variations.
The Solution • The SCC for an Intermittent Resource should be consistent with the method for calculating the Qualified Capacity for an FCA. • MR1 Section III.13.1.2.2.2.1(a) – With regard to any Forward Capacity Auction of the initial Forward Capacity Auction, for each of the previous five summer periods, the ISO shall determine the median of the Intermittent Power Resource’s and Intermittent Settlement Only Resource’s net output in the Summer Intermittent Reliability Hours, as defined in Section III.13.1.2.2.2.1(c). • MR1 Section III.13.1.2.2.2.1 (b) The Intermittent Power Resource’s or Intermittent Settlement Only Resource’s summer Qualified Capacity shall be the average of the median numbers determined in Section III.13.1.2.2.2.1(a) • Although not mentioned here, there are parallel rules for winter.
Recommended Change to M-RPA • Section 2.1(2) • The SCC of Intermittent Power Resources assets will be determined consistent with the procedures for calculating qualified capacity for Intermittent Power Resources in Market Rule 1, using the average of the annual median net output for the previous five Summer Capability and Winter Capability Periods across the Summer and Winter Intermittent Reliability Hours, respectively.
