Briefing on 2019 Policy Roadmap Greg Cook Executive Director, - - PowerPoint PPT Presentation

Briefing on 2019 Policy Roadmap

Greg Cook Executive Director, Market and Infrastructure Policy ISO Board of Governors Meeting General Session July 24, 2019

Each year Management presents its policy development plan the ISO Board and the EIM Governing Body.

• Management develops a 3 year roadmap that provides the high level

policy development plan and an annual plan listing policy initiatives to be addressed in the upcoming year.

• Several changes have occurred to the annual plan presented in

December – Five new initiatives added – Two initiatives removed

• Stakeholders requested the ISO update the 2019 annual plan
• 2020 through 2022 three year roadmap and 2020 annual plan

currently under development and will be presented at the end of the year

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2019 Annual Plan - initiatives added

• Real-time Market Neutrality Settlement

– Address cost allocation inefficiency identified in current approach

• FERC Order 831 – Bid Cap

– Further examine changes to ISO market constraint relaxation prices under $2,000/MWh bid cap

• Import Bid Cost Verification

– Develop cost verification requirements for import bids above $1,000/MWh

• Hybrid (solar + storage) Resources

– Explore how hybrid resources can be registered and configured to

• perate in the ISO market
• Capacity Procurement Mechanism - Soft Offer Cap

– Update the Capacity Procurement Mechanism soft-offer cap and compensation for 12-month CPM designations

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2019 Annual Plan - initiatives removed

• Day-Ahead Market Enhancements – 15-Minute Granularity

– Deferring in consideration of stakeholder comments

• Storage as a Transmission Asset

– Deferred to 2020 to provide time for storage dispatch policy resolution in ESDER 4

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Other initiative updates

• TAC Structure Enhancements

– Targeting Board of Governors in February 2020 to ensure coordination and alignment with Extended Day-Ahead Market policy – Targeting 2021 implementation for 2022 rates

2019 Annual Plan

*Timeframes are approximate and are subject to change

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2019

Jan-Mar Apr-Jun Jul-Sep Oct-Dec

ESDER 4 RA Enhancements CRR Track 2

Intertie Deviation Excess BTM LMPM Enhancements Market Settlement Timeline Transformation

Extend DAM to EIM Entities CPM & RMR Day-Ahead Market Enhancements System MPM Analysis Analysis

RTM Neutrality Settlement Intertie Bid Cost Verification CPM Soft Offer Cap

Major Initiatives Initiatives Decision Point Potential Initiative

System MPM

Multi-GHG Areas

Hybrid Resources

FERC Order 831 – Bid Cap

Continuing to analyze need for system market power mitigation measures and further CRR market enhancements

• System market power

– Structural competitiveness analysis complete – Continuing stakeholder process to determine appropriate mitigation measures

• Congestion revenue rights market

– Initial analysis shows enhancements implemented last year have resulted in significant market improvement with some mixed results – Results to date do not support need for additional enhancements – ISO will continue to monitor CRR market performance

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Two initiatives implemented last year to address CRR auction efficiency and revenue inadequacy

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Auction efficiency Revenue inadequacy

Pro-rata funding has been effective in the first months

• f the year

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Pro-rata funding has increased surplus allocated to measured demand

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First months of results show improved, but mixed results about CRR performance

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0% 35% 70% 105% 140% 175% 210% 245% 280%

5 9 14 18 23 27 32 36 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2018 2019 Ratio (%) Settlements (Millions $) Auction Revenue CRR Payment Ratio