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Highlights, cont. The ISO has received recent information regarding reduced and uncertain LNG supplies to NEMA/Boston during summer 2012 due to supply disruptions caused by pipeline attacks in Yemen that have shut down the Liquefaction facility
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Highlights, cont. • The ISO has received recent information regarding reduced and uncertain LNG supplies to NEMA/Boston during summer 2012 due to supply disruptions caused by pipeline attacks in Yemen that have shut down the Liquefaction facility • ISO analysis shows a significant reliability risk under high load and n-1-1 conditions • For May and June • LNG supplies for NEMA/Boston will be reduced • ISO is working on an operating plan to alleviate the reliability risk • ISO’s operating plan could include posturing the resources in the NEMA/Boston region on a weekly basis to manage limited energy output • ISO is reaching out and working with asset owners in the NEMA/Boston area to alert them to the situation and assure assets are ready to perform • This could impact the outage coordination and scheduling • This could have market impacts, including out-of-merit commitment and energy market prices, and increased OP-4 events
Highlights, cont. • For the rest of the summer period (July - September), ISO is • Working with all involved parties to seek and restore LNG supplies to current levels. If this occurs, a major portion of the risk will be alleviated for this period. • Preparing a contingency operating plan as a backstop to other options • ISO will keep everyone informed on the risks and mitigation measures • ISO has discussed the situation with FERC and MA DPU/DOER • The ISO may need to make some short term changes to the market rules to address this situation and we are looking at ways to improve performance incentives before the longer term capacity reforms become effective