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July 8-10, 2014 | NEPOOL MARKETS COMMITTEE July 8-10, 2014 | NEPOOL MARKETS COMMITTEE

July 8-10, 2014 | NEPOOL MARKETS COMMITTEE - PowerPoint Presentation

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July 8-10, 2014 | NEPOOL MARKETS COMMITTEE - PPT Presentation

Matt Brewster Market Development 4135404547 mbrewsterisonecom Reliability requirements for capacity zones FCM Local Sloped Demand Curves ISO intends to use existing reliability requirements to design capacity zones demand curves ID: 815530

zones capacity transmission constrained capacity zones constrained transmission zone resource amount import local export lole requirements lra days requirement

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Presentation Transcript

Slide1

July 8-10, 2014 | NEPOOL MARKETS COMMITTEE

Matt Brewster

Market Development413.540.4547 | mbrewster@iso-ne.com

Reliability requirements for capacity zones

FCM Local Sloped Demand Curves

Slide2

ISO intends to use existing reliability requirements to design capacity zones demand curves

ISO-NE is not proposing to change how the

locational resource requirements (i.e., LSR, TSA, LRA, MCL) are determined as part of the demand curve projectCurrent requirements for capacity zones will be used to establish curve shape and performance criteria (as was done for the system curve)

Several questions submitted by stakeholders pertained to methods used to establish capacity zone requirementsThe concepts and methodologies are fully-described in the annual report of ICR-related values (

2017/18 report

) and Section III.12 of Market Rule 1

This presentation highlights the relevant points about resource requirement determinations for capacity zones

2

Slide3

Import-Constrained capacity zones

Resource requirements: LSR, LRA, TSA

Slide4

For import-constrained capacity zones, the requirements define a

minimum capacity amount

Import-constrained zones are areas that, due to transmission constraints, are close to the threshold where local resources and transmission import capability may not be enough to reliably serve local demandThe Local Sourcing Requirement

(LSR) is the minimum amount of capacity that must be located within an import-constrained zone to satisfy resource adequacy and transmission security requirementsLSR is set at the higher of:

Local Resource Adequacy

(LRA) – slide 5

Transmission Security Analysis (TSA) – slide 6

4

Slide5

Local Resource Adequacy (LRA)

Minimum amount capacity that must be located in an import-constrained zone to meet system 0.1 days/year LOLE criteria

Probabilistic analysis which models the transmission interface limit between the zone under study and the rest of the systemImport zone target LOLE is 0.105 days/year0.105 days/year LOLE is the point at which resources available within the zone are insufficient; further reduction in local capacity would cause the system LOLE to increase above the 0.1 days/year criteria

Allowance for transmission-related LOLE of 0.005 days/yearMarket Rule 1 Section III.12.2.1.1

5

Slide6

Transmission Security Analysis (TSA)

Deterministic reliability screen using operable capacity analysis to develop a resource requirement for import-constrained zones which is sufficient to allow the system to operate through stressed conditions

Analysis models first contingency (N-1) and second contingency (N-1-1) conditions for the zoneDue to deterministic and transmission-security nature of TSA, some assumptions differ from those used to establish ICR

Market Rule 1 Section III.12.2.1.2

6

Slide7

EXPORT-Constrained capacity zones

Resource requirement: MCL

Slide8

For export-constrained capacity zones, the requirement defines a

maximum capacity amount

Export-constrained zones are areas that, due to transmission export constraints, could have locked-in resources that cannot be used to reliably serve the demand in the rest of the systemThe Maximum Capacity Limit

(MCL) is the maximum amount of capacity that can be procured from an export-constrained zone to meet the ICRMCL = ICR New England

– LRA

Rest of New England (outside export zone)

ICR New England is the total amount capacity needed for the system

LRA

Rest of New England

is the minimum amount of capacity required outside the export-constrained zone to meet 0.1 days/year LOLE

Market Rule 1 Section III.12.2.2

8