1. 2004/06/0 2 Market Operations Standing Committee of the IMO1 Small Facilities - Technical Requirements Rhonda Wright

2. 2004/06/0 2 Market Operations Standing Committee of the IMO2 Goal of Consultation Review market rule barriers to small facilities which have been identified by proponents who are expected to respond to government Requests for Proposals Discuss potential solutions and obtain comments from the MOSC on them

3. 2004/06/0 2 Market Operations Standing Committee of the IMO3 Small Facilities What Are They Why Are They Not in the Wholesale Market Now Why is Wholesale Market Participation an Issue What Barriers Exist to Discourage Market Entry

4. 2004/06/0 2 Market Operations Standing Committee of the IMO4 Small Facilities What Solutions are Available to Lower These Barriers What Issues May the Market Have With Lowering These Barriers What is the IMO’s Plan Going Forward

5. 2004/06/0 2 Market Operations Standing Committee of the IMO5 Small Facilities - What Are They? Small generation or load facilities Examples are Distributed generation (DG), demand response facilities, small wind Combination of small size (<2 to 5 MW) and low capacity factor (<500 hours per year) Typically embedded within an LDC

6. 2004/06/0 2 Market Operations Standing Committee of the IMO6 Why are they not in the market now? Revenues do not likely justify the cost of becoming an MP Threshold of 1 MW for facility registration for dispatchable facilities Typically embedded - no obligation to participate in IAM

7. 2004/06/0 2 Market Operations Standing Committee of the IMO7 Why is This an Issue? DG proponents are approaching IMO about participating in IAM Government Renewables RFP minimum size is 500 kW, requires participation in IAM 2500 MW RFP - demand response, DG Future initiatives?

8. 2004/06/0 2 Market Operations Standing Committee of the IMO8 What Barriers May Exist? Facility Registration - 1 MW minimum Telemetry - distributed control solutions introduce latency in data Main/Alt requirement for each revenue metering installation Voice Communication requirements

9. 2004/06/0 2 Market Operations Standing Committee of the IMO9 Possible Solutions Creating new minimum standards for these facilities - need criteria Exemptions - uncertainty for proponent, additional work for MP and IMO, lacks necessary transparency, may be needed for early entrants

10. 2004/06/0 2 Market Operations Standing Committee of the IMO10 Solutions - Issues Potential reliability impacts Impact on settlements for other MPs potentially affected by lower standard for these facilities (e.g. host distributor) Others?

11. 2004/06/0 2 Market Operations Standing Committee of the IMO11 Small Facilities What is the IMO’s plan going forward? –Consultation with Technical Panel, MOSC, and the Ministry of Energy - June 2004 –Develop strawman to facilitate entry of small facilities into IMO markets - June 2004 –Stakeholder strawman with MPs - June 2004

12. 2004/06/0 2 Market Operations Standing Committee of the IMO12 Small Facilities What is the IMO’s plan going forward? –Stakeholder strawman with Ministry of Energy and RFP Proponents - June/July 2004 –Finalize strawman - July 2004 –Development of market rules - Aug/Sept 2004 –Ensure market rules are in place to meet Ministry of Energy RFP schedule