Summary of Major Changes from Draft 3.0

CMS PHASE 1 DRAFT MARKET RULES

“Group 1 Rules- Draft 4 and 5”

February 20, 2001ISO New England

SECTION 1 - DEFINITIONS Clarified and added definitions based on

comments received: Deleted Base Supply Obligation, retained

Base Settlement Obligation Deleted CLL and Scheduled Dispatch Period Added External Transaction Modified numerous others for consistency

and clarification (Demand Bid, Fast Start Resource, Low Operating Limit, Self-decommit, Self-Schedule)

SECTION 2 - SCHEDULING AND DISPATCH

Section 2.1- Scheduling and Dispatch Rights Added Self-Schedule reduction

language Clarified requests for changes 90

minutes prior to hour are evaluated first come, first served.

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.2 - Scheduling Process Forecast Schedule update now issued

every two hours. Load Forecast section revised to allow ISO

increased flexibility to utilize most current techniques to develop Forecast Demand

Section 2.3.1 - Dispatch Process Removed reference to MRP-14 with regard

to redeclarations in Real-Time

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.4 – Self-commitment Request must be made at least 2 hours

priors to next Forecast Schedule update No Self-decommitment allowed except in

Excess Generation Condition May request to advance commitment

time or delay de-commitment times that were approved Day-Ahead

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.4 – Self-commitment Clarified Fast Start Resource treatment Requests may consist of two Energy

Blocks First block zero or negative price Second block zero price

ISO approves/denies request no later than 30 minutes prior to next Forecast Schedule update

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.5 – Self-Schedules Self-Schedule requests made 90

minutes prior to Trading Interval Fast Start Resources included May not request to reduce Self-

Schedule below amounts Self-Scheduled Day-Ahead

Self-Schedule requests evaluated on one Trading Interval basis

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.5 – Self-Schedules ISO to approve/deny SS requests no

later than 30 minutes prior to Trading Interval

ISO may deny request if request may impact unit commitment

Prices must be zero for Supply Offer SS increases and 9999 for Demand Bid SS increases.

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.6 – Fast Start Resources Clarified dispatch determination rules

for both Generators and Dispatchable Loads

Created separate Section (2.3.7) for dispatch of transactions at External Nodes

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.8 – EET’s Modified language associated with

settlements of pool-to-pool Emergency purchases

Pool-to-pool purchase costs initially collected from Participant’s with Settlement Obligations pro-rata based on Nodal Price at External Node and MW amount of purchase

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.8 – EET’s

Payments to other CA by ISO in excess of amounts collected are collected from Participants pro-rata based on negative ANI.

Payments to other CA by ISO that are less than amounts collected are paid to Participants pro-rata based on negative ANI.

EET Uplift collected from Participants based on negative ANI

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.10 – Excess Gen Excess Generation Condition:

Sum of SS plus sum of LOL’s not meeting Min Run Time exceeds Forecast Demand plus Demand Bids at External Nodes

SS reduced pro-rata to LOL Participants may request de-

commitment

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.10 – Excess Gen Excess Generation Emergency

Sum of LOL’s exceeds Forecast Demand plus Demand Bids at External Nodes

ISO issues Dispatch Instructions to de-commit.

Prices allowed to go negative based on Supply Offer prices submitted

SECTION 2 - SCHEDULING AND DISPATCH – Cont’d

Section 2.3.10 – Excess Gen Excess Generation Termination

Excess Generation Emergency cancelled when dispatch above LOL in an amount equal to MWs de-committed is achieved or unit is committed.

Excess Generation Condition is cancelled when all SS are restored.

SECTION 3 - SUPPLY OFFERS AND DEMAND BIDS

Section 3.2.2 - Self-Schedule Submission Removed Claimed Low Limit (CLL). Two Self-Schedule blocks allowed for

Generator Supply Offers: Must indicate that block 1 and/or block 2

are Self-Schedules First block equals LOL and must be zero or

negative Second block must be equal to zero

Blocks not Self-Scheduled must have positive price.

SECTION 3 - SUPPLY OFFERS AND DEMAND BIDS

Section 3.3.1 - Self-Schedule Submission Dispatchable Load Self-Schedules must

be so indicated and price must be equal to 9999

Section 3.4 – External Nodes Supply Offer or Demand Bid limited to

single price/quantity pair Clarified Through Transaction submittal:

Only price associated with “up-to” congestion needs to be submitted.

SECTION 4 - BILATERAL CONTRACTS

Corrected description of Firm Obligation Transfer Contract

Added curtailment language for ICAP Sales

SECTION 5 - ENERGY

Section 5.3.1 – Clearing Price Eligibility

Clarified language describing Generator eligibility to set Clearing Price

SECTION 5 - ENERGY

Appendix 5E – Emergency Sales Removed all requirements to recalculate

Nodal Prices for emergency sales Cost of sale initially collected from

Participant’s based on pro-rata share of Settlement Obligation

Participants paid amounts received by ISO from other Control Area based on pro-rata share of Settlement Obligation

SECTION 6 - SETTLEMENTS

Section 6.4.1 – Settlement Amounts Clarified calculation of Settlement

Obligations and Supply Obligations Retained Base Settlement Obligation

specifically for ease of use with reference to Obligation Transfer Contracts

SECTIONS 7, 8, 9, 10 – AGC, TMNSR, TMOR AND TMSR

No major changes.