NYISO Tariffs --> Market Administration and Control Area Services Tariff (MST) --> 23 MST Att H - ISO Market Power Mitigation Measures --> 23.6 MST Att H RMR Generator Energy and Ancillary Service Ma
23.6.1.1A Market Party shall Bid into the Day-Ahead and Real-Time Markets all of the Energy, Operating Reserves and Regulation each RMR Generator or Interim Service Provider is capable of providing by submitting ISO-committed flexible Bids at or below (equally restrictive to or less restrictive than for non-dollar parameters) the Generator’s reference levels.
23.6.1.1.1The ISO develops reference levels for Bids and Bid parameters, including Bid parameters that are not denominated in dollars. See, e.g., Sections 23.3.1.2 and 23.3.1.2.3.3 of these Mitigation Measures. A Market Party must submit Bids for RMR Generators and Interim Service Providers that are consistent with all reference levels determined by the ISO, including all non-dollar Bid parameters that have been set as reference levels by the ISO.
23.6.1.1.2If an RMR Generator or Interim Service Provider is not able to operate to a reference level that has been set by the ISO, the Market Party must timely contact the ISO in accordance with ISO Procedures to request a change and explain the need there for.
23.6.1.1.3If an RMR Generator is not capable of providing all or a portion of its capability flexibly, the ISO and Generator Owner (as defined in Section 38.1 of the OATT) shall specify the restriction in the RMR Agreement. If a new operating constraint arises during the term of an RMR Agreement that prevents the Market Party from offering all or a portion of a RMR Generator’s capability via an ISO-committed flexible Bid, then the Market Party must obtain written permission from the ISO to change how it offers the RMR Generator into the ISO Administered Markets. If a new operating constraint arises while a Generator is an Interim Service Provider that prevents the Market Party from offering all or a portion of the Generator’s capability via an ISO-committed flexible Bid, the Market Party shall promptly inform the ISO of the change, shall provide all documentation requested by the ISO or by the Market Monitoring Unit, and shall permit the ISO and/or the Market Monitoring Unit to inspect the affected Generator (including all requested plant records) on five days prior notice.
23.6.1.1.4Market Parties are not required to submit hourly Bids in the Real-Time Market for an RMR Generator or Interim Service Provider that is not capable of being committed by RTC if the RMR Generator or Interim Service Provider was not committed Day-Ahead. If such an RMR Generator or Interim Service Provider was committed Day-Ahead, then the Generator shall be Bid in real-time for the hours of its Day-Ahead schedule and for additional real-time hours consistent with the Generator’s operating capabilities.
23.6.1.1.5Market Parties shall timely respond to a Supplemental Resource Evaluation (“SRE”) or an Out-of-Merit (“OOM”) commitment request issued by the ISO or by a Transmission Owner for an RMR Generator or Interim Service Provider.
23.6.1.1.6If and to the extent a RMR Generator or Interim Service Provider is not available, or is not fully available, the Market Party shall timely notify the ISO of the outage or derate in accordance with ISO Procedures and accurately reflect each RMR Generator’s or Interim Service Provider’s availability in its Bids.
23.6.1.1.7The ISO shall monitor Bids that are submitted at prices below an RMR Generator’s or Interim Service Provider’s reference levels for possible uneconomic overproduction. See Section 23.3.1.3. RMR Generators and Interim Service Providers are compensated at the lesser of their Bid or the appropriate Reference Level in accordance with Rate Schedule 8 to the Services Tariff.
23.6.1.2RMR Generators and Interim Service Providers that are not Installed Capacity Suppliers, or that have not sold all of their Unforced Capacity, are still required to offer all of the Energy, Operating Reserves and Regulation each Generator is capable of providing into each Day-Ahead Market.
23.6.1.3RMR Generators that provide Voltage Support Services or Restoration Services shall do so in compliance with the relevant provisions of the ISO Tariffs and their RMR Agreement. Interim Service Providers shall provide Voltage Support Services and/or Restoration Services if they provided the service at any point during the 365 days prior to submitting a Generator Deactivation Notice and are physically capable of providing the service.
23.6.1.4Market Parties shall not schedule Bilateral Transactions for an RMR Generator’s output, unless the Bilateral Transaction is expressly permitted under the relevant RMR Agreement. Market Parties shall not schedule Bilateral Transactions for an Interim Service Provider’s output unless they were under an ongoing contractual obligation to do so at the time the Generator Deactivation Notice was submitted.
23.6.1.5Market Parties may only self-schedule an RMR Generator or Interim Service Provider if they are authorized to do so by the ISO.
23.6.1.6The responsibilities of the Market Monitoring Unit that are specified in Section 23.6.1 of the Mitigation Measures are also addressed in Section 30.4.6.2.143 of Attachment O.
23.6.2.1RMR Generator reference levels shall be developed in accordance with the rules specified in these Mitigation Measures, including the provisions of this Section 23.6.2.
23.6.2.2Interim Service Provider reference levels shall be developed in accordance with the reference level development rules specified in these Mitigation Measures, including the additional rules and authority that are expressly applied to Interim Service Providers in this Section 23.6.2. The ISO, in consultation with the Market Monitoring Unit, may review and update an Interim Service Provider’s reference levels. The Generator Owner may propose updates to its Interim Service Provider’s reference levels. The ISO shall make the ultimate determination with regard to each reference level.
23.6.2.3In advance of the execution of an RMR Agreement, the ISO, in consultation with the Market Monitoring Unit and Generator Owner, shall review and update the reference levels for each such Generator. The ISO shall make the ultimate determination with regard to each reference level.
23.6.2.3.1If a possible RMR Generator or Interim Service Provider faces operational constraints the ISO, in consultation with the Market Monitoring Unit and Generator Owner, will develop reference levels that will permit the Generator to operate consistent with the identified constraints, while ensuring that the Generator will be available (a) to resolve the Reliability Need the Generator is being retained to address, and (b) for economic commitment when appropriate.
23.6.2.4If an RMR Agreement is executed after the reference level review and update process described above is completed, then during the term of the RMR Agreement, the ISO’s authority to change the RMR Generator’s reference levels will be limited to the following circumstances:
23.6.2.4.1Reference levels may be adjusted based on season, the RMR Generator’s remaining availability or other factors, to address operational constraints;
23.6.2.4.2The costs used to develop a reference level (e.g., fuel, emissions, variable operation and maintenance expenses) may be revised whenever the ISO obtains updated or more accurate cost information;
23.6.2.4.3Opportunity costs may be updated based on actual operating experience during the term of the RMR Agreement;
23.6.2.4.4If a physical change to the RMR Generator occurs that alters the RMR Generator’s capabilities (e.g., damage to the RMR Generator or Capital Expenditures that alter an RMR Generator’s capabilities), then the ISO shall determine revised reference levels in consultation with the Market Monitoring Unit and Generator Owner; and
23.6.2.4.5The ISO and Generator Owner, in consultation with the Market Monitoring Unit, may mutually agree to a reference level change that they expect will better reflect an RMR Generator’s actual operating characteristics or variable costs.
23.6.2.5The Market Party shall timely submit fuel price updates and fuel type updates to the ISO so that they can be incorporated to develop accurate reference levels for each RMR Generator or Interim Service Provider.
23.6.2.5.1If a Market Party fails to timely submit fuel price updates and fuel type updates for an RMR Generator or Interim Service Provider, then the compensation paid for the RMR Generator’s operation may be limited by the reference levels that were in place.
23.6.2.5.2If a Market Party fails to timely update an RMR Generator’s or Interim Service Provider’s reference levels to reflect cost reductions that are not de minimis, and that are required to be reflected, then the ISO may recalculate the Generator’s reference levels and true-up the Variable Costs paid to the Generator under Rate Schedule 8 to the Services Tariff consistent with the Generator’s demonstrated costs. The ISO shall inform the Market Monitoring Unit if it performs such a true-up.
23.6.2.6The responsibilities of the Market Monitoring Unit that are specified in Section 23.6.2 of the Mitigation Measures are also addressed in Section 30.4.6.2.143 of Attachment O.
23.6.3.1RMR Generators and Interim Service Providers are required to Bid at or below their reference levels. The ISO shall mitigate all dollar-denominated Bids that exceed a RMR Generator’s or Interim Service Provider’s currently effective reference levels.
23.6.3.2If a Market Party submits unit commitment data or non-dollar Bid parameters for an RMR Generator or Interim Service Provider that is/are not consistent with the Generator’s reference levels without first requesting an adjustment to the Generator’s reference levels from the ISO, then the ISO shall inform the Market Monitoring Unit of the Market Party’s behavior and apply all Tariff-authorized mitigation measures, which may include the application of financial penalties in accordance with Section 23.4.3 of these Mitigation Measures.
23.6.3.3The ISO shall apply all other Tariff-authorized mitigation measures to RMR Generators and Interim Service Providers consistent with the Mitigation Measures.
23.6.4.1On and after the execution of an RMR Agreement, and for the duration of its term, a Market Party shall not enter into any new agreement or extend any other agreement that impairs or otherwise diminishes an RMR Generator’s ability to comply with obligation under an RMR Agreement, or that limits the ability of an RMR Generator to provide Energy or Ancillary Services directly to the ISO Administered Markets.
23.6.4.2A Market Party shall not enter into any new agreement or extend any other agreement that impairs, diminishes or limits the ability of an Interim Service Provider to provide Energy or Ancillary Services directly to the ISO Administered Markets.
23.6.4.3Market Parties shall not enter into, renew or extend bilateral agreements for Energy or Ancillary Services from an RMR Generator during the term of an RMR Agreement.
23.6.4.4Market Parties shall not enter into, renew or extend bilateral agreements for Energy or Ancillary Services from an Interim Service Provider.
23.6.4.5RMR Generators and Interim Service Providers are not eligible to receive Energy, Operating Reserves, Regulation or ICAP market revenues. Instead, RMR Generators and Interim Service Providers are compensated in accordance with Rate Schedule 8 to the Services Tariff and associated Tariff Rules for their participation in the ISO Administered Markets.
23.6.5.1The ISO may terminate an RMR Agreement, or may terminate an RMR Agreement with regard to one of the RMR Generators that is subject to an RMR Agreement if any of the following conditions occur:
(a)Owner (as defined in the Form of Reliability Must Run Agreement set forth in Appendix C of Attachment FF to the ISO OATT) defaults under the RMR Agreement and fails to timely cure its default;
(b)The RMR Generator fails to meet one or more of the Minimum Operating Standards set forth in the RMR Agreement (the Minimum Availability Standard, or the Minimum Performance Standard, or the Operation to Address the Reliability Need Standard); or
(c)The RMR Generator fails to operate as requested when it is called upon by the ISO or by a Transmission Owner to address the Reliability Need that it was retained to address on three or more occasions over the term of an RMR Agreement.
23.6.5.2If the ISO terminates an RMR Agreement for one of the reasons specified in Section 23.6.5.1 above, then it shall cease repaying the cost of any Capital Expenditures that were incurred at or for the terminated RMR Generator(s) unless the ISO is otherwise instructed by the Commission.
23.6.5.3Rules for concluding the obligations of an Interim Service Provider early are set forth in Section 38.13 of the OATT.
Effective Date: 7/23/2018 - Docket #: ER16-120-007 - Page 1