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30 January 2013 | Holyoke, Massachusetts

30 January 2013 | Holyoke, Massachusetts. Henry Yoshimura. Demand Resources Working Group. Federal Energy Regulatory Commission Order on FCM Conforming Changes for Full Integration. Director, Demand Resource Strategy ISO New England Inc. Background.

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30 January 2013 | Holyoke, Massachusetts

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  1. 30 January 2013 | Holyoke, Massachusetts Henry Yoshimura Demand Resources Working Group Federal Energy Regulatory Commission Order on FCM Conforming Changes for Full Integration Director, Demand Resource Strategy ISO New England Inc.

  2. Background • August 19, 2011: The ISO filed price-responsive demand (“PRD”) rules in response to Order No. 745. • ISO New England Inc., Order No. 745 Compliance Filing, Docket Nos. ER11-4336-000 and ER11-4336-001 (August 19, 2011). • January 19, 2012: The Commission accepts the ISO’s proposed PRD rules, subject to conditions. • ISO New England Inc., 138 FERC ¶ 61,042 (January 19, 2012). • April 26, 2012: The ISO filed changes to the FCM rules to conform to the Fully-Integrated PRD rules. • ISO New England Inc., Docket No. ER12-1627-000, Market Rule 1 Price Responsive Demand FCM Conforming Changes for Full Integration (April 26, 2012) . • January 14, 2013: The Commission rejects in part, and accepts in part, subject to conditions, the ISO’s proposed FCM rule changes. • New England Inc., 142 FERC ¶ 61,027 (January 14, 2013) (“January 14 Order”). • January 15, 2013: the Commission issued an Errata Notice. All references to the January 14 Order are to the corrected version of the order.

  3. The January 14 Order • Accepted: • The must-offer requirement for Demand Response Resources with a Capacity Supply Obligation. • Application of the Peak Energy Rent Adjustment. • The bulk of the proposed rules with the following implementation dates: • The accepted revisions to Tariff sections I.2.2 and III.13 to become effective on January 15, 2013, subject to conditions (discussed on slide 4). • Proposed revisions to Appendix E of Market Rule 1 with respect to Full-Integration were accepted and are to become effective June 1, 2017. • Implementation of the Fully-Integrated PRD rules extended from June 1, 2016 to June 1, 2017. • Rejected: • The ISO’s proposal regarding net supply, without prejudice to the ISO filing revised Tariff language to clarify its rules regarding demand response resources that provide capacity through both demand reductions and behind-the-meter generation.

  4. … Subject to Conditions … • The ISO is to explain on compliance: • How the Internal Market Monitor will monitor and evaluate offers by demand response capacity resources. • Whether the “3 of last 10 days” baseline refreshment is still a viable element of its methodology to ensure accurate baselines in light of the must-offer requirement. • The removal of transmission loss factor from the computation of demand resource capacity values. • The difference in the availability computation between a generator and a demand response resource with an audited or offered Full Reduction Time greater than 30 minutes and less than or equal to 12 hours.

  5. Next Steps • Requests for re-hearing are due by February 13, 2013. • ISO compliance filing on the issues raised on slide 4 are due by March 15, 2013. • Consider market rule clarifications regarding demand response resources that provide capacity through both demand reductions and behind-the-meter generation.

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