August 10, 2013

AUGUST 10, 2013

Mario DePillis and Bob LauritaINTERNAL MARKET MONITORING

Mitigation under NCPC Redesign

Synopsis

• Eliminating Day-Ahead General Threshold Mitigation

• Adding Manual Dispatch Mitigation

• Adding Manual Commitment Mitigation

• Start-Up and No-Load Fee Offer Limits (and Mitigation)

2

Manual Commitment and Dispatch

• Manual Commitment– Applies to manual decisions made by operators – Same low load cost test as other commitment mitigations

• Manual Dispatch– Applies if a resource is both manually dispatched and out

of merit– Out of Merit resources have LMPs below their offer for the

desired dispatch point (DDP) megawatts– Ends when resource becomes in merit or resource returns

to Eco Min

3

Commitment Mitigations

• The three types of commitment mitigation will use the same “Low Load Cost” test

• Low Load Cost test will be calculated using and commitment period known at the time of commitment as well as offer parameters and reference levels

• Duration of commitment mitigation is the duration of commitment period

4

Start-Up and No-Load Fees Overview

• Limited to 200% above reference level

• eMarket Bidding interface limit– Section III.A.6

• Standing offers (no bid made for the day) – Start-Up or No-Load Fees can become greater than 200% of Reference

Levels when fuel prices decline– Failure treated with mitigation – Section III.A.5.5.7.

5

Summary of Mitigation Types

6

Market Mitigation Type

Conduct Test Threshold

Impact Test Threshold

Mitigation Duration

Change Sections Changed

DA and RT

Local Reliability and Manual Commitment

LLC Ratio > 1.1 NADuration of Commitment

Added Manual Commitments, Moved Calculation of LLC

III.A.5.5.5., III.A.5.5.8., III.A.5.6.

RT OnlyGeneral Threshold Commitment

LLC Ratio > 3.0 NADuration of Commitment Deleted DA

III.A.5.2.1., III.A.5.3. , III.A.5.5.4., III.A.5.6.

RT OnlyConstrained Area Commitment

LLC Ratio > 1.25 NADuration of Commitment Duration III.A.5.6.

RT OnlyGeneral Threshold Energy

Any Segment: MIN Offer/Reference > 4;(Offer – Reference) > $100/MWh

YesAll Hours when Pivotal Supplier plus 1 Hour

Deleted DA III.A.5.5.1.

DA and RT

Constrained Area Energy

Any Segment: MIN Offer/Reference > 1.5;(Offer – Reference) > $25/MWh

Yes

DA: Impact hours. RT: constrained area hour plus 1 hour

No Change

RTManual Dispatch Energy

Any Segment Offer/Reference >1.1

NAAll hours energy is out of merit or until returned to EcoMin

Added III.A.5.5.3., III.A.5.6.

DA and RT

Start-Up and No-Load

Start-up or No-Load Offfer/Reference > 3.0

NAHours violating conduct test

Added III.A.6, III.A.5.5.7.