Welcome to . . . SMD Installed Capacity Market with UCAP & GADS

Acronyms ICAP- Installed Capacity UCAP- Unforced Capacity EFORd- Equivalent Forced Outage rate GADS - Generating Availability Data Systems NERC - North American Electric Reliability Council CA - Control Area MR 1X - Market Rule 1X QF - Qualified Facility

Upcoming SMD Training ICAP Training: GADS Workshop: July 9th & 10th ICAP Training sessions scheduled during the weeks of 7/15 and 7/22

Before we begin... What this course is: High level introduction to the ICAP market in SMD and the UCAP requirement, Not a detailed training for the ICAP market Questions Via email during session: onlineforums@iso-ne.com Via voice link during Q & A period: use “Raise hand” function

Purpose of Today’s On-line Training A preview of the new ICAP Market - ISO New England style…. ICAP will have a product called Unforced Capacity (UCAP) that that will allow participants to partake in the Capacity and/ or Deficiency Auctions What the UCAP requirements are Who, What and How is Operational Data submitted? ICAP

ICAP Definition NEPOOL establishes the Installed Capacity (ICAP) requirement to meet the reliability needs of the Control Area (CA)

UCAP Market Definition Unforced Capacity is the measurement used to determine if a Participant has met their contribution to it’s Installed Capacity Requirement

High-level flow NEPOOL sets annual ICAP Requirement ISO sets UCAP requirement once per year and updates monthly Generators provide Operating Data ISO Determination of Amounts of Capacity MWs based on ICAP resources Supply Auction Deficiency Auction

ISO responsibilities Converts NEPOOL established ICAP Requirement into UCAP Establishes standards, requirements and qualifications for ICAP resources etc. Determines amount that can be supplied Conducts monthly Supply Auctions and Deficiency Auctions

Generator Responsibilities Provide GADS if ICAP Resource Daily Info Offer capacity credit amount into system, no bid offer price will be set to ZERO Can de-list if chooses not to participate Offer into ICAP auction Remaining Capacity Credit can be submitted as an offer in the Deficiency auction

External Resource Responsibilities Provide GADS data or equivalent operational data External Resources have agreed not to CURTAIL the Energy Associated with the ICAP Participant must commit that it will submit a Supply Offer into the Day-Ahead Energy Market equal to resources ICAP reference Market Rule 1X, Section 8.3.1 for exceptions

External Resource Responsibilities Participants can offer External Resources into the NEPOOL Control Area as a qualifying resource if: Dispatchable Energy backed by a Unit Non-Dispatchable Energy backed by a Unit Non-Dispatchable Energy backed by a Control Area Capacity Credits backed by either an emergency interchange agreement or other emergency supply arrangement between Control Areas

On the Demand side of the quotation All Participants will receive yearly and updated monthly UCAP requirements based on contribution to previous years coincidental peak Load - Shifting adjustments will be made monthly and based on the data submission by Host Utility Meter Readers Submit daily Tag value for each Load Asset

What is GADS and How is it used GADS is Generating Availability Data Systems that is a format style used for submitting operational data The NERC-GADS data follows an 82 character fixed format as defined in the NERC GADS manuals The ISO will use the data for internal reliability studies and for calculating Unforced Capacity (UCAP) values Generating Resources with nameplate capacities greater than 5 MW or plants whose total capacity exceeds 25 MW are expected to submit the operational data

Example of GADS format The following slides are examples of the format requirements needed to submit your operational data Various programs are available in the market place or you can visit the NERC web site for a free sample

Performance File Layout – CARD 1 82 Columns per RECORD Net Dep. Cap 95 Card Code Unit Code Month Blank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Utility Code Year Revision Code Net Max. Cap Net Actual Gen Record Number 01 Unit Loading Act Unit Starts 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Att Unit Starts Blank Columns Note: Do not use zero-fill or asterisk-fill unused data fields. Columns 1 – 15 link the records together as a monthly report. Columns 81 – 82 identify the component records.

Performance File Layout – CARD 2 82 Columns per RECORD 95 Card Code Unit Service Hours Pumping Hours Available Hours Forced Outage Hrs. Unit Code Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Utility Code Year Revision Code Reserve Shutdown Synch Cond. Hours Planned Outage Hrs. Maint. Outage Hours. Unavailable Hours Blank Columns 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Ext. of Sched. Outages Period Hours Record Number 02 Note: Do not use zero-fill or asterisk-fill unused data fields. Columns 1 – 15 link the records together as a monthly report. Columns 81 – 82 identify the component records.

Event File Layout – CARD 01 82 Columns per RECORD Event Number Event Type 97 Card Code Unit Code Blank Columns 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Utility Code Year Revision Code Start of Event Blank Columns Gross Avail. Cap Blank Columns 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 End of Event Net Avail. Cap Record Number 01 Note: Do not use zero-fill or asterisk-fill unused data fields. Columns 81 – 82 identify the component records.

How does the auction work The monthly Auctions will give Participants the opportunity to satisfy their Unforced Capacity Requirements The Supply Auction will allow Participants offer to sell and bids to purchase Unforced Capacity The Deficiency Auction will allow the ISO to attempt to procure sufficient UCAP to cover the remainder of the Participant's UCAP for the month

Exceptions to the rules Special Case Resources Intermittent Power resources Limited Energy Non Dispatchable QF’s and Settlement Only Generators

Exceptions to the rules Will qualify for as a ICAP resource if they meet the criteria If it offers or Self-Schedules its Installed Capacity Equivalent into the Day-Ahead Energy Market each day If it is able to provide the energy equivalent of the Unforced Capacity for a duration consistent with its rating as determined in accordance with the rating process set forth in the NEPOOL Manuals Submits operational data pertaining to the previous month submitted prior to the 20th day of each month

How to get started Full year of Operational Data by September 20, 2002 Then, by the 20th of each following month, the previous Month’s Operational Data will need to be received. So on and so forth……..

ICAP Market Example of ICAP actions for January November December Contract Submittal (Day 6-26) 90 Day Resettlement November December January February March April May June 20 1 7 15 26 Daily 10 7 10 10 10 GADS Data submitted for October First day of the month available Daily Tag to calculate Monthly Requirement for January Calculate Monthly Requirement based on January 1st Ownership and December 1st Daily Tag Monthly Auction (supply bids and demand bids) Deficiency Auction (supply bids only) Receive Daily Tag Values Bill December Auctions (Supply and Deficiency) Accounting for January Load Shifting Bill Accounting for January Load Shifting Last day to submit changes to daily January Tag Values Bill 90 day Resettlement for January Load Shifting. (Daily Tags only)

Summary of Today’s ICAP Session NPCC Standards of the Forecasted Peak Load for the Capability Year is what is used to set the annual ICAP Requirement The Pool UCAP Requirement is set by using: Pool ICAP Requirement X (1-Average Forced Outage Rate) Generators provide 12 months of Operating Data by September 20, 2002 ISO Determination of Amounts based on ICAP resources Capacity Auction Deficiency Auction

Summary of Today’s ICAP Session The ICAP Requirement is translated to an Unforced Capacity (UCAP) Requirement by adjusting for the forced outage rate of generating assets in the Control Area All Participants contribute to the NEPOOL peak, so all are allocated a UCAP Requirement based on their coincident load

Summary of Today’s ICAP Session During the month Participants that are short or long in their UCAP requirement are offered a couple of options to meet their obligations. ICAP Resources can sell their UCAP internally or external, or elect not to participate in the ICAP Market

Summary of Today’s ICAP Session Keep in mind that Any month with zero reporting data of resources will result in zero ICAP Submitting GADS or equivalent operational data is very important!

Questions?