Decision on conditional approval to extend existing reliability - PowerPoint PPT Presentation

Jan 09, 2024 •112 likes •163 views

Decision on conditional approval to extend existing reliability must-run contracts for 2020 Neil Millar Executive Director Infrastructure Development Board of Governors Meeting General Session September 18, 2019 Management requests

Decision on conditional approval to extend existing reliability must-run contracts for 2020 Neil Millar Executive Director Infrastructure Development Board of Governors Meeting General Session September 18, 2019
Management requests conditional approval to extend reliability must-run contracts for 2020. • Reliability must-run designations are conditionally extended because: – Resource adequacy capacity from one specific unit may not be contracted by a load serving entity; and – There is a reliability need in the local area as determined by ISO studies. • Resource adequacy capacity is contracted, however, if the ISO determines that: – It needs certain reliability services not provided by the resource adequacy contract; – A unit may exercise market power for energy; or – Existing contractual arrangements may preclude the availability of that unit without a reliability must-run contract. Slide 2
The resource adequacy process follows a pre-determined timeline: • September 15, CPUC-jurisdictional load serving entities make preliminary resource adequacy showings • ISO Management makes 2020 RMR recommendations for units currently under contract – Oakland units 1-3 (TBD) – Yuba City Energy Center (Release) – Feather River energy Center (Release) • ISO Board authorizes Management to conditionally extend necessary existing reliability must-run contracts • October 1 letters for RMR extensions or terminations are sent to resource owners (after the preliminary showings are known). Slide 3
Management recommends extending the reliability must-run designations as set out below • Extend existing reliability must-run contracts for 2020 conditional upon results of resource adequacy showings process for the Dynegy Oakland, LLC generating units • Release Yuba City and Feather River Energy Centers because they have entered into RA contracts for their entire available capacity and for at least the 2020 RA year • Management will report back the results of the reliability must-run contract extensions at the November Board meeting. Slide 4

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