Existing Capacity QualificationFebruary 2008

Robert B. Burke & Eric WinklerISO New England Inc.DRWG - February 14, 2008

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Existing Capacity Qualification

• Important Dates– Resources ready-to-response as of February 8, 2008– ODR registered and active as of February 8, 2008

• FCTS Training– Monday, February 11, 2008 – Friday, February 15, 2008

• Existing Qualification– MIS Report Released: 2/14/2008

• ftp://misftp.iso-ne.com/• SP_EXISTCAPQUAL

– Challenge Period: 2/14 – 29– ISO Review: 5 business day– Final MIS Report Released: 3/7/2008

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SP_EXISTCAPQUAL(part 1)

Existing Capacity Qualification ReportSP_EXISTCAPQUAL_000000002_2010060100_20070130190255.CSVLSE1Date: 06/01/2010 and Version: 01/30/2007 19:02:55 GMT

Asset ID Asset Name

Asset Operating Status Resource Type

Load Zone ID Load Zone Name

Maximum Interruptible Capacity

Current Adjusted ICAP Resource Capability

Number String String String Number String MW MW1001 Interruptible Load 1001 ACTIVE On-Peak Demand 601 Nepool Load Zone 6011002 Interruptible Load 1002 ACTIVE Seasonal Peak Demand 601 Nepool Load Zone 6011003 Interruptible Load 1003 ACTIVE On-Peak Demand 601 Nepool Load Zone 601

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No longer used

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Existing Capacity Qualification ReportSP_EXISTCAPQUAL_000000002_2010060100_20070130190255.CSVLSE1Date: 06/01/2010 and Version: 01/30/2007 19:02:55 GMT

Asset ID

Summer Seasonal Demand Reduction Value

Summer Qualified Capacity

Winter Seasonal Demand Reduction Value

Winter Qualified Capacity

Low Winter Qualified Capacity Indicator

Calculated Summer Seasonal Demand Reduction Value

Calculated Winter Seasonal Demand Reduction Value

Adjusted Winter Qualified Capacity

Number MW MW MW MW Flag MW MW MW1001 0.19 0.23 0.19 0.23 N 0.19 0.19 0.231002 0.08 0.1 0.08 0.1 N 0.08 0.08 0.11003 1.5 1.85 2.1 2.59 N 1.2 2.1 2.09

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SP_EXISTCAPQUAL(part 2)

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What Can You Challenge?

• Summer Capacity• Winter Capacity• Resource Type

– Provided not under multi-year commitment

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Supporting Data Requirement

• Summer Capacity– Increase or Decrease

• In text box provide short explanation• Attached supporting analysis and documentation (i.e., Excel, Word)

to justify the change

• Winter Capacity– Increase or Decrease

• In text box provide short explanation• Attached supporting analysis and documentation (i.e., Excel, Word)

to justify the change

• Resource Type– Provided not under multi-year commitment– Short explanation in text box

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Example Data

• For new Existing Resources (5/1/07 to 2/8/08)– Capacity is shown as 0– Transition ICAP in the Real-Time Demand Response Program is

based on the maximum reduction in any 5-minute interval– In FCM capacity will be based on Average Hourly performance

over multiple events in a month • Summer: June, July, August

• Winter: December, January

– Therefore, ICAP values established on August 15, 2007 may not be representative of a RTDR, RTEG or Critical Peak Resource’s Summer or Winter Capability in the FCM

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Supporting Analysis & Documentation

• Market Participants should use a combination of historical load and performance data, as well as their understanding of the end-use loads being controlled to estimate an asset’s Summer and Winter Capability.

• Below are some questions a Market Participant should be prepared to answer to justify their Summer and Winter Capability estimates:– Are the loads being controlled constant on a day-to-day and month-to-

month basis? If so, how does the Market Participant know the loads are constant?

– Are the loads being controlled dependent on the season, production levels or other loads at the facility or other exogenous factors? If so, what is the relationship between the loads being controlled and the other factors?

– What is the coincidence of the controllable loads with the expected FCM performance hours (i.e., Forecast Hours, Shortage Hours, On-Peak Hours)?

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ODRs with FCM #1 Obligations

• Many Current ODR projects have both existing and new obligations in the FCM #1

• Must ask if current MW in DR tracking system are all obligated to FCM #1.

• If current MW are built to fulfill FCM #1 obligation– Be careful not to double count– Could end up with more obligation than you can deliver

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ODR Example (continue)

• In the case where you have:– 8 MW current ODR project (project 9xxx)– 1 MW Existing Capacity Obligation in FCM #1 (asset #1234)– 14 MW New Obligation in FCM #1 (asset 5678)

– MIS Report• 9xxx 0 MW

• 1234 1 MW

• 5678 14 MW

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ODR Example (continue)

• In the case where you have:– 8 MW current ODR project (project 9xxx)– 1 MW Existing Capacity Obligation in FCM #1 (asset #1234)– 14 MW New Obligation in FCM #1 (asset 5678) and– Can deliver 17 MW by FCM #1, more than the 14 MW that

cleared in the auction.

– MIS Report• 9xxx 2 MW

• 1234 1 MW

• 5678 14 MW