ASM Phase IIReserve Zone Criteria

NEPOOL Markets CommitteeMay 24, 2005

Jim Milligan

ISO-NE Markets Development

2

Outline

• Proposed Reserve Zones

• Use of Reserve Zones

• Reserve Zone Characteristics

• Review/Definition Periodicity

• Relationship with Other Zone Definitions

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Proposed Reserve Zones

• The ISO is proposing that the following Reserve Zones be defined and used for the initial implementation of ASM Phase II:

– SouthWest Connecticut (SWCT)

– Connecticut

– NEMA/Boston

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Use of Reserve Zones

• Reserve Zones will be modeled as part of the power system configuration used in the New England Wholesale markets

• Reserve Zones and Reserve Zone requirements will be inputs into the LFRM clearing, the real time dispatch algorithm and Settlements

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Reserve Zone Characteristics

• Defined for areas of power system that routinely require Daily RMR Resources to cover local 2nd contingency reliability criteria.

• Zones are import constrained areas and consist of closed interfaces.

• Zones must be contained within or the same as Energy Load Zones.

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Zone Review/Definition Periodicity• Zone definitions (and requirements) will be

reviewed and discussed as part of derivation and assumptions for each LFRM Auction.

• Zone changes will be published as part of LFRM Auction Assumptions.

• Zone changes will be coordinated with other Market timing and notifications.

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Zone Relationships (based on ISO Proposals)

Reliability LICAP ASM Energy

Region Region Reserve Zone Load Zone

Maine Maine RoP Maine

NH RoP RoP NH

VT RoP RoP VT

WCMass RoP RoP WCMass

SEMass RoP RoP SEMass

NEMA/Bos NEMA/Bos NEMA/Bos NEMA/Bos

RI RoP RoP RI

RoCT RoCT RoCT RoCT

SWCT SWCT SWCT SWCT

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Questions