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Proposed Revisions to ISO Tariff Schedule 2 for Electric Storage Facility Reactive Resources and Administrative Changes

This document discusses the proposed revisions to Schedule 2 of the ISO Tariff, including the inclusion of electric storage facility reactive resources and other administrative changes. The revisions aim to enhance the participation of storage devices in the ISO Day-Ahead and Real-Time Energy Markets. The document also highlights the timeline for the revisions and their proposed effective date.

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Proposed Revisions to ISO Tariff Schedule 2 for Electric Storage Facility Reactive Resources and Administrative Changes

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  1. April 17, 2019 | Westborough, ma Kory Haag (413) 535-4064 | khaag@iso-ne.com Revisions to Schedule 2 of Section II of the ISO Tariff and the Schedule 2 Business Procedure to include Electric Storage Facility Reactive Resources and Other Administrative Changes Schedule 2 VAR Capacity Cost Compensation Procedure Updates

  2. In October 2018, the ISO, joined by NEPOOL, filed with FERC proposed revisions to Section II of the Tariff that created multiple constructs for storage devices to fully participate in the ISO Day-Ahead and Real-Time Energy Markets • FERC accepted the revisions in a February 15, 2019 letter order • These Tariff revisions required evaluation of Reactive Capability Auditing and compensation provisions for storage devices • Related revisions to Section III.1.5.3 of the Tariff, OP-23, and OP-23 Appendix G to accommodate the introduction of ESFs as well as non-generator dynamic Reactive Resources are being discussed at the Reliability Committee • The proposed Schedule 2 and Schedule 2 Business Procedure revisions are scheduled for discussion at today’s meeting with a vote requested at the May 16, 2019 meeting • The proposed effective date of these revisions is August 2019, following receipt of a FERC order accepting the proposed Tariff revisions • The Tariff revisions are scheduled to be filed in mid-to-late June with a requested effective date 60 days thereafter

  3. Schedule 2: • Certain provisions are being moved into Schedule 2 from the Business Procedure, including: • Requirement to provide reactive capability data in order to be designated a Qualified Reactive Resource • Requirement for calculating Qualified VARs if any audit data point is less than 75% of the average audit value • Schedule 2 Business Procedure: • The addition of the Electric Storage Facility (ESF) construct requires minor modifications to the Schedule 2 Business Procedure to state how ESF resources are treated in Schedule 2 capacity cost compensation program (CCCP) • The rest of the changes to the Schedule 2 Business Procedure are non-substantive changes that include using defined terms, fixing grammar, eliminating duplicative language, and clarifying/reorganizing content • The CCCP Reactive Capability Waiver Request and Qualified Reactive Resource Termination Request forms are being added to the Schedule 2 Business Procedures as, respectively, new Appendix B and new Appendix C • Currently, these two forms are stand alone documents on the ISO website

  4. Proposed Schedule 2 Revisions to move requirements from Schedule 2 business procedure and for clarity

  5. Examples of Requirements Moved from Schedule 2 Business Procedure into Schedule 2

  6. Examples of Requirements Moved from Schedule 2 Business Procedure into Schedule 2

  7. Examples of Clarifications, Clean-Up Changes and Wording/Usage Choice Revisions to Schedule 2

  8. Proposed Schedule 2 business procedure Revisions associated with esf revisions

  9. ESF Revisions to Schedule 2 Business Procedure

  10. ESF Revisions to Schedule 2 Business Procedure (cont.)

  11. Proposed Schedule 2 business procedure Revisions for grammar and clarity

  12. Examples of Clarifications, Clean-Up Changes and Wording/Usage Choice Revisions to Schedule 2 Business Procedure

  13. Examples of Clarifications, Clean-Up Changes and Wording/Usage Choice Revisions to Schedule 2 Business Procedure

  14. Examples of Clarifications, Clean-Up Changes and Wording/Usage Choice Revisions to Schedule 2 Business Procedure

  15. Examples of Clarifications, Clean-Up Changes and Wording/Usage Choice Revisions to Schedule 2 Business Procedure

  16. Proposed Schedule 2 business procedure appendix additions

  17. Schedule 2 Business Procedure Appendix B CCCP QVAR Waiver Request Form

  18. Schedule 2 Business Procedure Appendix C – Qualified Reactive Resource Termination Request Form

  19. Conclusion The proposed changes to the Schedule 2 and the Schedule 2 Business Procedure • Moves requirements from the Business Procedure into the Tariff • Incorporate Electric Storage Facility language into the Schedule 2 capacity cost compensation program • Update Schedule 2 Business Procedure language for defined terms, grammar, clarity, and reorganization of content • Add Schedule 2 Business Procedure Appendices B - CCCP Reactive Capability Waiver Request Form and C - QRR Termination Request Form from stand-alone forms • The proposed revisions are scheduled for a vote at the May 16, 2019, Transmission Committee meeting • The proposed effective date of these revisions is August 2019, following receipt of a FERC order accepting the proposed Tariff revisions

  20. Stakeholder Schedule

  21. Kory Haag 413) 535-4064 | khaag@iso-ne.com

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