Transcript ISO-NE and NEPOOL Governance The Stakeholder Process

What is ISO-NE?
• ISO-NE serves as the Regional Transmission
Organization (RTO) as well as the Control Area
Operator and the Planning Authority for the New
England Region
• ISO-NE operates the system in accordance with Market
Rules, Operating and Planning Procedures approved by
FERC.
• Except in limited circumstances, ISO-NE has sole
authority to file for changes in these Rules and
Procedures under Section 205 of the Federal Power
Act.
Major ISO-NE Functions
• Minute-to minute operation of generation resources, load
response resources and transmission facilities to maintain
reliability.
• Oversee and administer the New England wholesale
electric markets.
• Manage the New England electric system planning process.
• Administer the New England Open Access Transmission
Tariff (OATT), including settlement and billing and
performing interconnection studies.
What is NEPOOL?
• Under current FERC practices, ISO-NE is required
to consult with its stakeholders prior to filing any
changes in the Market Rules and Procedures.
• NEPOOL serves as the stakeholder advisory body
for ISO-NE, currently with 452 Members.
• Under the Participants Agreement, if NEPOOL
disagrees with an ISO proposal by a sufficient
majority, NEPOOL can file an alternative proposal
with FERC and have it evaluated on a equal basis
as the ISO proposal (i.e. “jump-ball” provisions.)
How does NEPOOL work?
• For voting purposes, NEPOOL is organized into six
Sectors.
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Transmission Sector
Generation Sector
Suppliers Sector
End-Users Sector
Alternative Resource Sector
Publicly-Owned Entity Sector
• Each Sector has roughly equal voting weight, with
votes within the Sector spread equally among all
Participants.
How does NEPOOL work? (cont.)
• Functionally, NEPOOL is organized into one high-level
voting Committee and three voting Technical
Committees
– Participants Committee (PC): takes final action to
represent NEPOOL organizational position.
– Markets Committee (MC): reviews and recommends PC
action on all proposals related to Market Rule changes.
– Reliability Committee (RC): reviews and recommends PC
action on all proposals related to maintaining system
reliability.
– Transmission Committee (TC): reviews and recommends
PC action on all proposals related to transmission tariff.
How does NEPOOL work? (cont.)
• There are also a number of non-voting
committees.
– Budget and Finance Committee
– Membership Committee
– Demand Response Working Group
– Planning Advisory Committee (PAC)
How does NEPOOL work? (cont.)
• During 2010 there were a total of 67 meetings
of the PC and the three Technical Committees
which resulted in 356 votes.
– Participants Committee – 12 meetings/ 134 votes.
– Markets Committee – 17 meetings/86 votes.
– Reliability Committee – 24 meeting/ 114 votes.
– Transmission Committee – 14 meeting/ 22 votes.
Why Participate in the Stakeholder
Process?
• Sometimes the ISO listens to you.
• Sometimes the other Participants will listen to you.
• You gain a better understanding of how the proposed
changes can impact your system.
• By constructive engagement, you build credibility so that
people will listen t o you on other issues in the future.
• Sometimes its easier to influence a change if you engage
early in the process rather than waiting until the end.
What issues are facing us over the next
year?
• FCM, FCM, FCM, FCM, FCM……
• Compliance Filing for March 15 FERC Demand
Response Compensation NOPR
– Filing due July 22
– Filing will include transition mechanism and rules for
full integration.
– FERC has said to pay resources full LMP during hours
when they benefit the system.
– Full integration not feasible for at least 3 years.
What issues are facing us over the next
year? (cont.)
• ISO-identified strategic issues:
– Potential retirement of oil-fired and other low
capacity-factor resources.
– Lack of operating flexibility of units in the existing
fleet.
– Integrating Non-Transmission Alternatives into the
planning process.