A U G U S T 6 , 2 0 1 4 | N E P O O L M A R K E T S C O M M I T T E E

Jay DwyerI S O N E W E N G L A N D

Conforming Changes to Manuals for Net Commitment Period Compensation Payments Tariff Changes, associated clean-up, and elimination of M-29

Conforming Manual Changes for NCPC Payments

Notes on M-29 Elimination

• In the course of reviewing M-29 for NCPC payments revisions, the ISO noted that all of what M-29 does is done elsewhere:– The summary of invoice is done more accurately and is updated more

frequently in the Billing Job Aids on the ISO website; and– RBA is fully covered in the Tariff and M-28.

• M-29’s Summary of Invoice section requires significant revision to reflect the new NCPC types.

• M-29 has little or nothing to do with Market Participant actions.

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Manual Changes

The Manual changes other than elimination of M-29 are to:–Conform the Manual language to the new

NCPC provisions in the Tariff;–Correct errors and make clean-up changes;All these changes are summarized in the

following slides

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M-11 NCPC Revisions (1 of 2)

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Section Proposed Change Reason2.2.1 Delete sentence on DAM

schedules remain binding at this point.

NCPC treatment does not always make this true; and MR-1 this point.

2.2.3A(8) Delete statement about eligibility for NCPC for generators with Minimum Run Times >24 hours

Appendix IIIF revisions cover this point.

2.2.8(5) Revise provision on treatment of Postured Resources

Avoid restating new III.F provisions for different types of Posturing Credits in the Manual.

M-11 NCPC Revisions (2 of 2)

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Section Proposed Change Reason

3.1.2 Revise SCR provisions to simplify language and delete re-phrasing of III.F provisions.

Avoid repeating Appendix F provisions and repetitive language in this section of the Manual.

3.1.4 Delete Cancelled Start Credits defined in I.2.2 and provided for in Appendix III.F.

M-28 NCPC RevisionsSummary

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Section Proposed Change Reason

Throughout Replace “block” with “Block”

Defined term added in NCPC/EMOF conforming changes to Tariff.

6.1 Replace “based on deviations used to allocate Real-Time NCPC costs” with “as described in Market Rule 1 Section III.F.3.1.2 (g)”

Clarifies reference.

8.1 Delete (1) and (2) [Clean-Up NOT NCPC related]

Summary of an allocation that is described in 8.2.1(3).

8.2.1(h) & 8.3.1(g)

Delete Reflect MR-1 language. Clean-up

M-35 Revisions (1 of 8)• Several revisions to M-35 not related to NCPC or Offer

Flexibility were added here.

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Term Proposed Change Reason

Throughout Delete bracketed references at end of definitions

Relic of the first version . These identified the source of the definitions.

Black Start Generator

Delete reference to M-27 M-27 no longer exists

Cancelled Start Credit

Delete [NCPC Revision] Revised definition now in I.2.2

Cancel Time Delete [NCPC Revision] No longer used & to reflect new App F

Commitment Order Time

Delete [NCPC/EMOF] No longer used in Manual M-28. Inconsistent with revised MR-1

M-35 Revisions (2 of 8)• Revisions (cont.)

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Term Proposed Change Reason

Commitment Period

Delete [NCPC] New definition in I.2.2

Congestion Revenue Fund

Delete Term defined in I.2.2

Congestion Shortfall

Delete Term defined in I.2.2

Day-Ahead Commitment Periods

Delete [NCPC] Reflect definition of Commitment Period in I.2.2 and new App F

Demand Designated Entity

Delete Term defined in I.2.2

M-35 Revisions (3 of 8)• Revisions (cont.)

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Term Proposed Change Reason

Designated Entity Delete Term defined in I.2.2

Desired Dispatch Point

Delete Term defined in I.2.2

External Control Area Resource

Delete External Resource is defined term in I.2.2

Forward Reserve Failure to Activate Penalty

Delete Term defined in I.2.2

Generator Flags Revise to change “Generation” to “generation”

Not a defined term

Generator Regulation Credits (GRC)

Delete This was deferred in Regulation revisions because it becomes effective with EMOF & NCPC

Highgate Tie Replace “II.1” with “I.2.2” Correct Section reference

M-35 Revisions (4 of 8)• Revisions (cont.)

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Term Proposed Change Reason

Interest Charge Delete Section I.2.2 definition of Interest “as calculated in the manner specified in Section II.8.3”. Also uses M-27, which does not exist.

Internal Bilaterals for Market

Delete descriptions. Defined term retained for now because used in other Manuals.

Covered in MR-1. Also, current language gives false impression these are the only IBMs allowed.

ISO Commitment Order Time

Delete [NCPC] Not used in Manuals & tied to old Cancelled Start Credit

ISO Self-Funding Tariff Accounting Services

Delete M-27 reference M-27 doesn’t exist

M-35 Revisions (5 of 8)• Revisions (cont.)

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Term Proposed Change Reason

Late Fee Delete M-27 reference M-27 doesn’t exist

Local Second Contingency Protection Resource NCPC Charges/Credits

Delete [NCPC] Reflect new defined terms for NCPC types added to I.2.2

Meter Reader Delete Defined term is Assigned Meter Reader in I.2.2

Network Integration Transmission Service

Delete Term not used in Manuals. FERC pro-forma term for a service we don’t have.

M-35 Revisions (6 of 8)• Revisions (cont.)

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Term Proposed Change Reason

Network Load Delete No longer used in Manuals. Changed to Regional Network Load defined in I.2.2

Open Access Transmission Tariff

Delete Term defined in I.2.2

Out Service Delete Other than as Section heading, no longer used in Manuals. There is no Out Service. The Tariff service is Through or Out Service.

Participant Expenses

Delete Term defined in I.2.2

M-35 Revisions (7 of 8)• Revisions (cont.)

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Term Proposed Change Reason

Payment Default Shortfall Fund

Delete Term defined in I.2.2

Power Year Delete No longer used in Manuals.

Real-Time Adjusted Load Obligation Deviation

Delete Term defined in I.2.2

Reliability Administration Service (RAS)

Delete Term defined in I.2.2

Remittance Advice Delete Term defined in I.2.2

Reserve Adequacy Analyses

Delete Term defined in I.2.2

M-35 Revisions (8 of 8)• Revisions (cont.)

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Term Proposed Change Reason

Synchronous Condenser

Delete Term defined in I.2.2

System Operator Delete Term defined in I.2.2

Through Service Delete Other than as part of the name of a transaction type, no longer used in Manuals. There is no Through Service in the Tariff just Through or Out Service.

VAR Delete Term defined in I.2.2 and is no different than the ordinary dictionary definition.

M-20 Revisions for NCPC

• Section 2.5 Line 5 (Section III.13.5.3) Change designation time for Supplemental Capacity Resources to match Tariff;

• Defined terms Operating Day and Minimum Run Time should be capitalized (Minimum Run Time is a new defined term; Operating Day is a clean-up change).

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M-RPA Revision for NCPC

• In Section 3.4.6.2, replace “notification period” with “Demand Resource Notification Time” to reflect revision in Section III.13.6.1.5.4.3.3 made in the Conforming Tariff changes for EMOF and NCPC.

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M-36 Revision for NCPC

• Section 3.1 Revise the deadline for designating Forward Reserve Resources to “as provided under Market Rule 1 Section III.9.5.1”.

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Proposed Stakeholder Schedule• Today: Present proposed changes and red-

lined Manuals to the Committee;• September: Review the actual red-lined

Manuals with the Committee;• October: MC Vote on Manuals;• November: PC Vote.

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ISO Closing Remarks

• Both the EMOF and NCPC Payments Tariff revisions are effective in December.

• The NCPC Payments revisions will be made to the Manuals as revised for EMOF to be effective at the same time.

• Thank you for your time and attention.

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Questions, comments and concerns