FEBRUARY 11-12, 2014|Markets committee

1. FEBRUARY 11-12, 2014|Markets committee Jay Dwyer JDWYER@iso-ne.com Conforming Manual Changes Demand Response Baselines and Outages

2. Tariff Changes Filed With FERC ER140727-000 • December 20, 2013 Filing; • Requested Effective Date June 1, 2014 • Beginning in May 2014, DR Providers will be able to provide notice of scheduled curtailments (See Market Rule 1 Section III.8A.5.1);

3. Baseline Revisions • III.8A.1 revised to allow consolidation of Real-Time Demand Response Assets into a single RT Demand Response Asset at a single retail delivery point; • III.8.A.4.4 added to provide for a baseline adjustment for Real-Time Demand reductions produced by a Real-Time Demand Response Asset located at a retail delivery point where there are no other RT Demand Response Assets at or behind that retail delivery point; • III.8A.5 added to provide for establishing the Demand Response Baseline for a day with a scheduled or forced curtailment . • III.8A.5.1 provides for notification of curtailments; • III.8A.5.2 provides for submission of meter data values for days with forced or scheduled curtailments; • III.8A.5.3 provides for performance assessment for days with forced or scheduled curtailments

4. MR-1 Sections III.13 and Appendix III.E1 Revisions • III.13.7.1.5.10.2 is revised to refer to a planned outage of the equipment used to produce the demand reduction and to replace several references to “reduction” with “curtailment”; • III.E1.2.4 is revised to refer to Real-Time Demand Response Assets whose demand reductions are achieved in part or in whole by Distributed Generation; • III.E1.3.1 is revised to add a paragraph prohibiting submission of Demand Reduction Offers for Real-Time Demand Response Assets on scheduled or forced curtailments; • III.E1.8.2.1 is a new section added to provide for Real-Time reductions of Assets with generation.

5. Proposed Manual Changes The Manual Changes fall into three basic categories: 1. Changes needed to reflect the Tariff changes becoming effective June 1, 2014; 2. Changes to reflect previously identified problems with the current Manual provisions; and 3. Clean-up: • A) Correct incorrect section references; • B) Grammar and readability revisions; • C) Clarifying edits.

6. Manual M-28

7. Manual M-RPA (1 of 3)

8. M-RPA (2 of3)

9. M-RPA (3 of 3)

10. Manual M-MVDR (1 of 2)

11. Manual M-MVDR (2 of 2)

12. Proposed Schedule: • Today: • Briefly present proposed Manual changes; • Take any questions or comments. • March Markets Committee: • Present proposed Manual changes; • Highlight any changes made and comments received; • Discuss revisions; • April Markets Committee: • Vote • May Participants Committee vote to approve the Manual revisions.

13. SUMMARY • These Manual changes are intended to implement the Tariff changes that become effective June 1, 2014 and to clean-up the Manuals where we can without unduly expanding the scope of this project. • If any of the category 2 or 3 changes are likely to become contentious, we would like to know that fairly soon. • If there are any questions or comments not raised today please send them to jdwyer@iso-ne.com