AmendmenttoISOInterimCompensa2onTreatmentProposal

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March5,2019MarketsCommi5eeMee6ng

AbbyKrich,BoreasRenewables

AboutRENEWAnassocia6onoftherenewableenergyindustryandenvironmentaladvocates

unitedtopromoterenewableenergyintheNortheast.

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•  ISO’sDesignObjec6veA:“Providesimilarcompensa6onforsimilarservice”

•  Chapter3proposalrecognizesandappearstosa6sfythisobjec6ve.–  “Levelsthecompe66veplayingfieldforthereliabledeliveryofenergythroughcold-

weathercondi6ons”–ISO’sDesignPrinciplespresentedtoMC9/13/18

•  ISO’sInterimCompensa6onproposalcompensatesonlyforinventoriedenergy–  Itdoesnotcompensateforenergyactuallyprovidedduringcoldweathercondi6ons–  ItthereforfailstomeetDesignObjec6veAbecauseitdoesnotrecognizethatproviding

energyduringcoldweathercondi6onsisjustasimportant,andasimilarservice,asprovidinginventoriedenergyduringthesecondi6ons.

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DesignObjec2veANotBeingMet:NoCompensa2onforActualEnergyProvided

•  Resourcesthatprovideenergyduringcoldweathercondi6onsarenecessarytomaintainingreliability.

•  Resourcesthat,duetotheirtechnologytype,dothiswithoutrelyingon“inventoriedenergy”receivenodirectcompensa6onforthisserviceunderISO’sproposal.

•  EveryMWhtheseresourcesprovidemeansanotherMWhofinventoryisabletobemaintained.Thetwoareinterrelated.

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EnergyandInventoryAreBothNeededtoEnsureWinterReliability

•  RENEWproposesthatthespotratebepaidforeither:–  Inventoryavailableattheendofthetriggerday(asproposedbyISO),or–  ActualMWhprovidedduringthetriggerday–  (whicheverisgreater)

àResourcesthat:–  provideenergywithoutinventory(e.g.,wind,gaswithoutLNGcontract)

•  paidLMPplusspotrateforwhattheyactuallyprovide

–  haveinventorybutprovidenoenergy(e.g.,oil)•  paidexactlyasISOhasproposed

–  provideenergyandhaveinventory(e.g.,nuclear)•  arenotdoublepaidforboth•  arepaidforinventory(exactlyasproposedbyISO)unlesstheyhavelessinventorythanthe

MWhtheyactuallyproducedduringtriggerdayinwhichcasepaidforenergy.

•  Trulytechnologyneutral•  Moreproperlyvalueswinterenergysecurity

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ProposedAmendment:EnergyActuallyProvidedShouldReceiveSameCompensa2onasInventory

•  RENEWalsoproposesthatresourcesthatexpecttoprovideenergyduringtriggercondi6onscansellforwardseasonallyforactualMWhtobeprovidedineachevent.

•  Wouldse5leatspotrateiftheyproducemoreMWhorfewerMWhduringtriggerperiodthancommi5ed.

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ProposedAmendment:AllowForwardSaleofEnergy

•  ModifiesISOproposaltoachievethedesignobjec6veto“Providesimilarcompensa6onforsimilarservice.”

•  Doessoatmodest,ifany,addi6onalcost•  Doesnotdouble-payforenergyprovided•  Providesincen6veforbe5eru6liza6onofavailableenergy/

inventorysupply

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BenefitsofRENEWAmendment

AbbyKrichPresident,BoreasRenewables,LLC(ConsultanttoRENEW)krich@boreasrenewables.com

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Ques2ons