Installed Capacity (ICAP) Market

Installed Capacity (ICAP) Market Amanda Carney Associate Market Design Specialist, Capacity Market Design, NYISO New York Market Orientation Course (NYMOC) October 16-19, 2018 Rensselaer, NY 1

ICAP Market Module Objectives Describe the benefits of the ICAP Market Identify the role of the Installed Reserve Margin in the Capacity Market Identify the NY Control Area and Transmission District Capacity Requirements Explain the reason for Locational requirements Name at least two requirements of capacity Suppliers 2

ICAP Market Module Objectives Cont d Calculate the UCAP value for a supplier Describe the Load obligations of an LSE Distinguish between the three different ICAP Auctions Calculate the settlement for an auction award Identify at least one condition that could be subject to sanctioning 3

ICAP Market Overview and Benefits. 4

ICAP Market Overview Offers to sell capacity into auctions Bids to procure capacity through the auctions NYISO runs auctions to match bids and offers and determine a clearing price Parties to a contract for capacity report the sales to the ISO Auxiliary processes and activities 5

ICAP Market Overview Determine the Amount of Capacity Required Determine the Amount of Capacity Available Determine the Amount of Capacity Suppliers are Qualified to Offer Determine the Amount of Capacity Obligation to Procure 6

ICAP Market Overview NYISO establishes ICAP requirements each Capability Year (May 1st April 30th) These ICAP requirements are used to determine the UCAP requirements each Capability Period and each individual LSE s UCAP requirements 7

ICAP Market Overview Installed Capacity vs. Unforced Capacity ICAP requirement is translated to UCAP value Accounts for historic availability of suppliers Calculated by NYISO every Capability Period Calculated for NYCA and localities 8

ICAP and UCAP Requirements NYCA Capacity Requirements NYCA Minimum ICAP NYCA Minimum UCAP TD Capacity Requirements Transmission Owner TD Minimum UCAP Locational Capacity Requirements Locational Minimum ICAP Locational Minimum UCAP of LSEs LSE Minimum UCAP in addition to Locational UCAP obligation *LSE Capacity Requirements LSE Locational Minimum UCAP LSE NYCA Minimum UCAP * LSE = Load Serving Entity 9

ICAP Market Overview Benefits Ensures resource adequacy Provides a means for resources to recover a portion of fixed costs Provides market signals for investment 10

Let s Review How do generators benefit from the ICAP market? How do loads benefit from the ICAP market? 11

Amount of Capacity Required -How much do we need?. 12

NYCA Minimum Installed Capacity Requirement Ensures resource adequacy Supply is sufficient to meet load Meets Reliability Standards Established Annually 13

How much capacity is required? NYCA Minimum ICAP Requirement uses the Installed Reserve Margin (IRM) Installed Capacity Requirement - Capacity above firm system load required to provide for equipment outages (both forced and scheduled) and transmission capability limitations. NYCA Minimum Installed Capacity Requirement Locational Minimum ICAP Requirements: G-J Locality, LI & NYC 14

Installed Reserve Margin (IRM) Established annually by the NYS Reliability Council (NYSRC) for the upcoming Capability Year Based on the Northeast Power Coordinating Council (NPCC) Standard for Resource Adequacy the probability (or risk) of disconnecting any firm load due to resource deficiencies shall be, on average, not more than once in ten years. Expressed as a percentage IRM for 2018 Capability Year is 18.2% 2017: 18.0% 2016: 17.5% 2015: 17.0% 15

NYCA Minimum Installed Capacity Requirement Based on the Installed Reserve Margin (IRM) NYCA Minimum ICAP Requirement = Forecasted NYCA Peak Load X (1 + IRM) Calculated by NYISO each Capability Year Expressed as a MW value Minimum Locational Installed Capacity Requirements also established 16

NYCA Minimum Installed Capacity Requirement Forecast Peak Load Last year s NYCA coincident peak load, adjusted for: Load reductions provided by Demand Side Resources Weather Changes in Load Growth 17

NYCA Minimum Unforced Capacity Requirement ICAP requirement converted to UCAP value Accounts for historic availability of units NYCA UCAP Requirement = Min ICAP X (1 Avg. Derating Factor) Calculated by NYISO each Capability Period Expressed as a MW value Minimum Local Capacity Requirements also established 18

NYCA Minimum Unforced Capacity Requirement Derating factors by location Average Unavailability Weighted Average of all NYCA Derating Factors Recalculated each Capability Period Location Summer 2017 Winter 2017-2018 Summer 2018 G-J Locality 7.31% 7.54% 6.26% Long Island 5.60% 6.07% 6.28% New York City 4.37% 5.26% 7.09% NYCA 9.29% 8.43% 8.56% 19

ICAP and UCAP Values 20

ICAP and UCAP Values Locational Requirements 21

Transmission District (TD) Capacity TD Minimum ICAP Requirement Example for Con Edison (Summer 2018 values) Con Edison of NY Forecasted Peak Load: 13,309.6 MW NYCA IRM: 18.2% TD ICAP Requirement: = TD Forecasted Peak Load X (1 + NYCA IRM) = 13,309.6 X (1 + 0.182) = 15,732.0 22

TD Minimum UCAP Requirement Based on the annual NYCA Forecasted Peak Load and the individual TD Forecasted Peak Load TD Min UCAP Requirement = NYCA Min UCAP Requirement X (TD Forecasted Coincident Peak Load / Sum of Forecasted Coincident Peak Loads for all TDs) TD Min UCAP used to calculate LSE Minimum UCAP Requirement *Refer to Section 3.3 of the ICAP Manual 23

TD Minimum ICAP and UCAP Requirements 15,732.0 Con Ed TD ICAP Req. Con Ed Example 18.2% Margin 14, 385.3 Con Ed TD UCAP Req. Minimum Requirements for the Con Edison TD (Summer 2018 values) NYCA IRM is 18.2% Forecasted Peak Load for TD Con Edison is 13,309.6 MW Con Ed Example Transmission District Minimum ICAP Requirement 13,309.6 MW Forecasted Peak Load for Con Edison Transmission District TD ICAP Requirement = TD Forecasted Peak Load X (1 + IRM) Calculated on Slide #22 TD UCAP Requirement = NYCA UCAP Requirement X (TD FPL / Sum of TD FPL) 35,561.7 X (13,309.6 / 32,902.5 ) = 14,385.3 * FPL = Forecasted Peak Load 24

ICAP and UCAP Values 25

Amount of Capacity Available -How much do we have?. 26

Determine the Amount of Capacity Available Suppliers provide data to demonstrate their capability to produce a certain number of MW (Resource Capability) Seasonal effects are taken into consideration Resource Capability determined by one of the following DMNC / DMGC Test Performance Test Resource Nameplate Actual Production Data 27

Determine the Amount of Capacity Available Dependable Maximum Net Capability (DMNC) Test Demonstrates a generator s ability to generate power Tested every Capability Period Must coordinate test with NYISO Different rules for different classes of generator Value determines ICAP value for the Capability Period* Dependable Maximum Gross Capability (DMGC) Test Applicable to Behind-the-Meter Net Generation Resources The same procedures that apply to DMNC also apply to DMGC Refer to ICAP Manual Section 4.2 28

Capability Periods and Test Periods Winter Capability Period Summer Capability Period Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Winter Test Period Nov 1 st -April 15 th Summer Test Period June 1 st -Sept 15 th Exceptions to these test periods are Special Case Resources Out of period testing permitted for specific conditions - see ICAP Manual 29

Let s Review How often must a DMNC test be conducted? a) annually b) weekly c) monthly d) every Capability Period 30

Let s Review When can a DMNC test be conducted for the summer capability period? a) April 15 th Sept 15 th b) May 1 st Aug 31 st c) May 1 st Oct 31 st d) June 1 st Sept 15 th e) June 1 st Oct 31 st 31

Amount of Capacity Suppliers are Qualified to Offer -How much can be sold?. 32

Unforced Capacity (UCAP) How UCAP is calculated depends on the type of Resource: Generators, System Resources and ELRs: Based on EFORd SCRs: Based on their Average Coincident Load and use Performance Factor instead of EFORd Control Area System Resource: Based on Control Area Resource and Load (CARL) Data Intermittent Power Resource: Based on the amount the Intermittent can provide during system peak Load hours, as determined per ISO Procedures Limited Run-of-River Hydro Resource: Determined separately for Winter and Summer Capability Periods as rolling average of the hourly net Energy provided by each resource during the 20 highest NYCA integrated real -time load hours in each of the five previous Summer or Winter Capability Periods 33

UCAP for Resources A generator may sell Capacity equal to its maximum demonstrated output adjusted for the deliverability limit and by its historic availability. UCAP = Available ICAP X (1- Derating Factor) CAPACITY TO OFFER HISTORIC AVAILABILITY DELIVERABILITY LIMIT MAXIMUM DEMONSTRATED OUTPUT *This formula is for Internal Generators that are not BTM:NG 34

UCAP Deliverability Limit Capacity Resource Interconnection Service (CRIS) Class Year Deliverability Studies are conducted to determine the amount of capacity that resources can deliver to any point in its Capacity Region Applicable to new resources or existing resources that request to increase their CRIS CRIS Value or CRIS CAP *Note: Capacity Region has a different meaning than Locality. Demonstrated output adjusted to account for deliverability Available ICAP 35

UCAP Deliverability Limit Capacity Resource Interconnection Service (CRIS) Enables a resource to participate in the NYISO Installed Capacity market to the extent of its deliverable capacity Considers system deliverability upgrades In order to qualify for CRIS, a generator or controllable transmission facility seeking to participate in the Capacity market (i.e., with UDRs) must either Be determined by the NYISO to be deliverable for all or a portion of its requested CRIS; or Commit to fund the upgrades necessary to make it deliverable 36

Available ICAP Available ICAP for Internal Resources Available ICAP Summer = Minimum (Summer CRIS MW Cap, Summer DMNC) Available ICAP Winter = When Winter CRIS % is specified: = TRUNC (Winter CRIS % x Winter DMNC, 1) When Winter CRIS CAP MW is specified: = Min (Winter CRIS CAP, Winter DMNC) 37

Historic Availability Availability is based on Derating Factors that are a function of one or more of the following factors: Forced Outages Derates Actual performance 39

Derating Factors Unit Type Derating Factor ICAP Manual Reference(s) Conventional Generator, Energy Limited Resource (ELR), Capacity Limited Resource (CLR) Special Case Resources (SCR) Intermittent Power Resources (Wind, Solar, Landfill Gas) Equivalent Demand Forced Outage Rate (EFORd) Historical Performance Factor Actual Performance Production Factor Section 4.5 Section 4.4.4 Section 4.12 Section 4.5.1 Limited Control Run-of-River Hydro Actual Production Data Attach J Section 3.4 40

EFORd Equivalent Demand Forced Outage Rate Calculated from Generating Availability Data System (GADS) Data Submitted to NYISO Monthly Forced Outages and Derates Dispatched and unable to respond Unplanned event 41

Derates and Outages Derate Forced Outage EFORd =.05 EFORd =.05 5% Output Available all the time but at a reduced output Available at full output but for less than 100% of the time 5% Time 42

Let s Review If a resource has a Derating Factor of.05, what is its historic availability? a) 5% b) 10% c) 50% d) 95% e) 100% 44

Let s Review What is the maximum capacity that a unit can sell given that it has a DMNC of 200 MW, deliverable CRIS CAP of 190 MW and a historic availability of 0.95? a) 10 MW b) 100 MW c) 180.5 MW d) 190 MW e) 200 MW 45

Other Capacity Resources. 46

Capacity Resources Generators Within NYCA Outside NYCA Special Case Resources Within NYCA 47

Special Case Resources Categories Interruptible Loads Qualified behind-the-meter Local Generator SCR Aggregation Use Performance Factor rather than Derating Factor Two successive seasonal performance factors (during event and tests) 1-hour performance test within Capability Period or 1-hour mandatory event data Includes best 4 hours of each mandatory event within a Capability Period **Refer to Section 4.12 of ICAP Manual 48

Special Case Resources cont d UCAP for SCR Pledged amount of load reduction, increased by Transmission District loss factor (TLF) and adjusted by historical performance factor SCR UCAP = SCR ICAP X Applicable Performance Factor Where: SCR ICAP = Pledged Amount X (1 + TLF) Managed by Responsible Interface Party (RIP) **Refer to Section 4.12 of ICAP Manual 49

External Capacity Resources External CRIS Rights: (ECRs) One time opportunity to convert Grandfathered Rights were to External CRIS Rights or awarded through the Class Year process Contract or Non-Contract Commitment Consequences for not supplying Capacity associated with Existing Transmission Capacity for Native Load ( ETCNL ) Capacity associated with Unforced Capacity Deliverability Rights (UDRs) Linden VFT Cross Sound Cable Neptune HTP Import Rights First Come First Served: Subject to Import Limits *External Installed Capacity Supplier requirements listed in ICAP Manual, Section 4.9 50

External Capacity Resources: Import Limits Import Limits are set to determine the amount of capacity that can be imported into NYCA using the First Come First Served Process Limit is established after considering External CRIS Rights Established by NYISO Based on reliability studies Determined annually Available Import Rights are based on Import Limits Calculated for each month of upcoming Capability Period *Import Limits: ICAP Manual, Section 4.9.6 *Import Rights: http://www.nyiso.com/public/markets_operations/market_data/icap/index.jsp 51

External Capacity Resources: Import Limits - Maximum provided by resources outside NYCA (Excluding Resources Using UDRs, ETCNL, and External CRIS Rights) Amount of External ICAP Permitted to be Allocated for NYCA Interfaces 2017-2018 Capability Year Total (MW) Grandfathered (MW) and Cap. Year External CRIS (MW) Remaining (MW) PJM 1140 38 1102 ISO-NE 306 0 306 Ontario 128 0 128 Quebec via Chateauguay 1115 1110 (Apr-Nov) 239 (Dec-Feb) 259 (Mar) 5 (Apr-Nov) 876 (Dec-Feb) 856 (Mar) Quebec via Cedars 0 0 0 Total NYCA Interfaces 2689 ***Neighboring Control Area rules must provide that the resource will not be recalled or curtailed to satisfy the Control Areas own load. 52

Unforced Capacity Deliverability Rights (UDRs) Rights associated with a specific transmission interface in a Locality Either from an External Control Area or a non-constrained region in NYCA Allows remote capacity external to the area to be treated as if it were physically located in the Locality Only associated with Scheduled Lines UDRS approved based on CRIS requested and received in relation to transfer capability 53

Unforced Capacity Deliverability Rights (UDRs) Current UDRs Awarded Cross Sound Cable (CSC) - New England to Long Island, Zone K 330 MW Neptune Cable PJM to Long Island, Zone K 660 MW Linden VFT PJM to New York City, Zone J 315 MW Hudson Transmission Project (HTP) PJM to New York City, Zone J 660 MW *ICAP Manual Section 4.9.6 54

UDRs EXAMPLE UDR Line Losses: 2.86% (equivalent to 10.3 MW) UDR Unavailability: 2% ISONE Resource A Gen 1 154 MW ICAP 1% Derating Factor Resource B Gen 2 206 MW ICAP 5% Derating Factor 4.4 MW Portion of UDR losses 5.9 MW portion of UDR losses PJM Scheduled Line_XYZ 331.3 MW (UCAP) 55

Amount of LSE Capacity Obligation to Procure -How much must be purchased?. 56

LSE Capacity Requirements Obligation to Procure How much must be procured? All LSEs are required to purchase a specific amount of the Total NYCA Capacity Requirement Based on their contribution to the Transmission District s peak load coincident with the NYCA peak load LSEs may also have Locational Capacity Requirements (G-J Locality, LI and NYC) 57

LSE Capacity Requirements LSE Minimum ICAP Requirement Each LSE required to procure a certain percentage of the Total Capacity Requirement The amount that forms the base is calculated each Capability Year and includes: Forecasted Peak Load IRM and Locational Capacity Requirement percentages System changes due to transmission capability 58

LSE Capacity Requirements LSE Minimum UCAP Requirement NYISO calculates for a Capability Period Each month each LSE must satisfy its minimum UCAP requirement May satisfy via self-supply, bilateral transactions or through NYISO administered auctions Why ICAP to UCAP? Incorporates Derating Factor Calculated by NYISO every Capability Period Calculated for NYCA and localities 59

LSE Capacity Requirements LSE Minimum UCAP Requirement Min UCAP calculated separately for each Transmission District in which it serves load UCAP requirement adjusted monthly for customer switching For LSEs serving load in G-J Locality, Zone K (LI), or Zone J (NYC), a specified amount of their requirement must be purchased within the LSE s respective Locality (based on their local load forecast) 60

Locational Capacity Requirements Locational Minimum ICAP Requirements LSEs required to obtain a certain percentage of their total capacity requirement in the Locality in which they serve load. Locational Capacity Requirements (LCRs) established annually for the following Localities: G-J Locality Requirement 2017 Capability Year 94.5% of G-J forecasted peak load Zone K (LI) Requirement Zone J (NYC) Requirement 103.5% of LI forecasted peak load 80.5% of NYC forecasted peak load 61

Locational Capacity Requirements Locational Minimum ICAP Requirement (MW) = Local Forecasted Peak Load X Locational Capacity Requirement (LCR) Percentage 62

Summary of Capacity Requirement Percentages 2018 Capability Year (May 2018 - April 2019) NYCA: 118.2% [based on the IRM] Locational Capacity Requirement (LCR) G-J Locality: 94.5% LI: 103.5% NYC: 80.5% Note: These values are the NYSRC Executive Committee approved IRM and the NYISO approved LCRs for the applicable Capability Year 63

Example: Locational Minimum ICAP Requirements 15,732.0 Con Ed TD ICAP Requirement Con Ed Example Transmission District Minimum ICAP Requirement Con Ed Example NYCA (ROS) 3,190.7 MW G-J Locality (G, H, & I) 3,252.6 MW NYC 9,288.7 MW (Summer 2018 values) For Con Ed s portion only: Con Ed s TD ICAP Requirement = 15,732.0 Calculated on Slide #22 Forecasted Peak Load Requirement Con Ed TD NYCA 13,309.6 118.2% Con Ed TD G-J 13,271.2 94.5% Con Ed TD NYC 11,538.7 80.5% G-J Locational ICAP Requirement is 94.5% of G-J Locality FPL: 13,271.2 X 94.5% = 12,541.3 MW NYC Locational ICAP Requirement is 80.5% of NYC FPL: 11,538.7 X 80.5% = 9,288.7 MW Remaining G-J Locational Requirement after meeting the NYC requirement can be purchased in G, H & I: 12,541.3 9,288.7 = 3,252.6 MW Remaining NYCA requirement can be purchased in G, H, I, J, or ROS: 15,732.0 12,541.3 = 3,190.7 MW 64

Locational Capacity Requirements Locational Minimum UCAP Requirement = Locational Minimum ICAP X (1 - Average Locational Derating Factor) 65

Example: Locational Minimum UCAP Requirement 14,385.3 Con Ed TD UCAP Con Ed Example Transmission District Minimum UCAP Requirement Con Ed Example NYCA (ROS) 2,629.1 MW G-J Locality (G, H, & I) 3,126.1 MW NYC 8,630.1 MW (Summer 2018 values) For Con Ed s portion only: Con Ed s TD UCAP Requirement = 14,935.4 MW Calculated on Slide #24 Locational Min ICAP X (1 Loc. Derating Factor) G-J Locational UCAP Requirement is: 12,541.3 X (1 6.26%) = 11,756.2 MW NYC Locational UCAP Requirement is: 9,288.7 X (1 7.09%) = 8,630.1 MW Remaining G-J Locational UCAP Requirement after meeting the NYC UCAP Requirement can be purchased in G, H, & I: 11,756.2 8,630.1 = 3,126.1 MW Remaining NYCA UCAP Requirement after meeting the G-J Locational UCAP Requirement can be purchased in G, H, I, J, or ROS: 14,385.3 11,756.2 = 2,629.1 MW 66

ICAP and UCAP Values Locational Requirements 67

Summary - How much must be procured? LSE Minimum UCAP Requirement Procure UCAP at least equal to the LSEs share of the Forecast Peak Load plus a margin and an adjustment for resource availability. For LSEs serving load in G-J Locality, LI or NYC a specified amount of their UCAP Requirement must be purchased within the LSE s respective Locality (based on the Local Load Forecast) 68

Capacity Auctions. 70

ICAP Market Auctions Capability Period Auction (Strip Auction) Monthly Auction Spot Market Auction 71

Capability Period Auction A bid in this auction is for the same MW level and price for the entire capability period. Auction is run at least 30 days prior to the start of the Capability Period Auction solves for a (6) Month Strip of UCAP at a Single Price/Month January February March April May June July August September S T R I P November December January February March S T R I P SUMMER CAPABILITY PERIOD WINTER CAPABILITY PERIOD May June July October April 72

Monthly Auction May buy/sell for any month remaining in the Capability Period Auction is run at least 15 days prior to the start of the Month January February March April May June July August September October November December January February March April May June July 73

Spot Market Auction Auction is run 2-4 days prior to the start of the Month May Sell for upcoming Month only Must Certify all Capacity before Auction Solves using the Demand Curve January February March April May June July August September October November December January February March April May June July 74

ICAP Event Calendar 75

Let s Review Which auction allows market participants to purchase capacity for an entire 6 month period all at once? a) Capacity Auction b) Monthly Auction c) Spot Market Auction d) Strip Auction 76

Let s Review What is the purpose of holding the spot market auction? 77

Spot Market Auction and Demand Curve Demand Curve used to determine a spot market clearing price Values additional UCAP above Minimum NYCA and Locational requirements Reduces price volatility Provides signal for capacity investment 78

Separate ICAP Demand Curves to determine Total [NYCA] LSE Unforced Capacity Obligation NYC Locational component of LSE UCAP Obligation Long Island Locational component of LSE UCAP Obligation G-J Locality component of LSE UCAP Obligation Demand Curves are reset every four years and include annual adjustments. 79

Demand Curve Components 1. Reference Point: Set price point for 100% of minimum requirement NYCA: $ 9.23 G-J Locality: $12.68 NYC: $19.37 LI: $8.30 2. Maximum Clearing Price: Equal to 1.5 times the estimated localized levelized cost of new peaking unit NYCA: $14.10 G-J Locality: $19.64 NYC: $27.31 LI: $21.81 3. Zero Crossing Point: Percentage of requirement where price is $0 NYCA Demand Curve: 112% G-J Locality Demand Curve: 115% LI & NYC Locational Demand Curves: 118% 2016/2017 ICAP Based Prices ($/kw-month) 2016/2017 ICAP Based Prices ($/kw-month) 80

Example of NYCA Demand Curve (ICAP) Maximum Clearing Price $14.10 Reference Point $/kwmonth (ICAP) $9.23 Zero Crossing Point $0 * 2016 / 2017 Capability Year % of ICAP Requirement 100% 112% 81

ICAP/UCAP Translation of Demand Curve Winter 2016/2017 Capability Period 82

Let s Review The Demand Curve is applicable to which auction(s)? a) Capability (Strip) Auction b) Monthly Auction c) Spot Market Auction d) All of the above 83

Auction Settlements Award amount X Auction Clearing Price 100 MW X $2.67/kW-month Convert 100 MW to kw: (100 MW X 1,000kW/MW) 100,000 kw X $2.67/kW = $267,000 for the month Auction Awards appear in following weekly invoice Monthly amount is prorated by the number of days on the weekly invoice divided by the number of days in the month Bilateral Transactions are settled between parties outside of NYISO 84

Activities / Responsibilities Submission of GADS Data, monthly Certification prior to applicable auction LSE must certify the amount of UCAP it has or has obtained Suppliers certify UCAP has not been sold for use in an External Control Area UDR holders certify that their capacity is not already accounted for elsewhere Secure UCAP Bilateral contract (includes self-supply) or NYISO Auction Bid, Schedule, Notify in DAM Energy Market*** 85

Bid, Schedule or Notify ICAP Suppliers must either: Bid [Offer] Energy in the DAM Schedule a Bilateral Transaction OR Notify the NYISO of any outage Exceptions to this are outlined in Section 4.8 of the ICAP manual The total amount of Energy that an ICAP supplier bids, schedules or declares unavailable on a given day must equal or exceed the Installed Capacity Equivalent (ICE) amount of UCAP sold ICE value is a generator s capacity sold adjusted for availability ICE = UCAP Sold 1 - Derating Factor 86

Let s Review How much must this ICAP supplier Offer, Schedule, or Notify in DAM if: UCAP Sold = 50 MWs Derating Factor =.05 (available 95% of the time) 87

Sanctions Failure to comply with bidding, scheduling and notification requirements and procedures Failure to provide required information 88

To summarize IRM NYCA Minimum ICAP Requirement Transmission District ICAP Requirement UCAP Locational Minimum ICAP Requirement Transmission District UCAP Requirement Individual LSE Minimum UCAP Requirement 89

ICAP Summary - Supplier Activities Submit DMNC data each Capability Period Submit monthly GADS data, or equivalent Certify prior to ICAP Spot Market Auction Offer capacity in auction Bid, schedule or notify in Day-Ahead Market, if obligated to do so 90

ICAP Summary - Load Activities Purchase capacity in auction Minimum requirement Locational Requirements Certify prior to ICAP Spot Market Auction Note: Transmission Owners must submit Adjusted Load data coincident with NYCA peak 91

ICAP Summary NYISO Activities Review and adjust Demand Curves every 4 years Through the ICAP Working Group Provide Minimum ICAP Requirements Calculate UCAP Conduct Auctions Post award data to web Settlement mechanism 92

Let s Review What is the primary purpose of the ICAP market? a) Ensure sufficient load exists for NYCA generation b) Ensure competitive pricing of new generation c) Facilitate competitive procurement of generator fixed costs d) Ensure sufficient resources exist to serve load 93

Let s Review In addition to submitting data to support their actual output, what are suppliers also required to do as an ICAP supplier? 94

Let s Review Which of the following statements are true regarding DMNC tests? a) Test should be conducted only during test periods b) An out-of-period test can be conducted with prior NYISO approval c) In lieu of a test, a generator can submit actual operating data d) All of the above are true 95

Let s Review What does UCAP represent? a) Unforced operating parameters b) The average availability of a given generator c) ICAP adjusted for forecast usage d) Demonstrated output adjusted for deliverability and availability 96

Additional Resources Tariffs MST and OATT ICAP Manual ICAP Automated Market System (AMS) User s Guide Outage Scheduler User s Guide 99