O C T O B E R 8 , 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 covers this point.

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

Appendix III.F 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-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.

Agreements Delete Only used in M-29

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

Capital Funding Tariff

Delete Only used in M-29

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

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Term Proposed Change Reason

Commitment Order Time

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

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

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

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 Bilateral 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

Late Fee Delete Used only in M-29

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

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Term Proposed Change Reason

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.

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

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

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Term Proposed Change Reason

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

Payment Default Shortfall Fund

Delete Term defined in I.2.2

Power Year Delete No longer used in Manuals.

Preliminary Settlement Treatment

Delete Used only in M-29

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

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Term Proposed Change Reason

RAS Customer Delete Used only in M-29

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

Shortfall Funding Arrangement

Delete Used only in M-29

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

System Restoration and Planning Service

Delete Used only in M-29 and obsolete term.

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.

Through or Out Service

Delete reference to M-27 There is no M-27

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 refer to Tariff Section;

• Defined term Operating Day should be capitalized (Clean-up change).

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M-28 Revisions for NCPC

• In addition to revisions to Sections 6.1, 8.1 and 8.2 made as part of the Energy Market Offer Flexibility revisions, the new defined term “Block” replaces “block” throughout the document.

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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

• August 5-6, 2014 MC Meeting: Presentation and discussion of proposed revisions and red-lined manuals;

• Today: Discussion and MC Vote on Manuals;• November: Participants Committee Vote;• December 3, 2014 effective date (to match

Tariff provisions).

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Questions, comments and concerns