By William Opalka
Unable to reach consensus on a winter reliability program, ISO-NE and the New England Power Pool have asked federal regulators to choose between competing proposals in a “jump ball” proceeding that would cover the next three winters (ER15-2208).
The proposals were filed Thursday with the Federal Energy Regulatory Commission in an attempt to break a logjam that even a commission order couldn’t weaken. (See FERC Orders Market-Based Reliability Program Next Winter in ISO-NE.)
ISO-NE has used a winter reliability program for the past two winters to create incentives for generators to secure fuel supplies during cold months until its Pay-for-Performance program, already approved by FERC, launches in late 2018 (ER14-1050).
Both ISO-NE and NEPOOL have proposed expansions of last winter’s program, but neither has received adequate support among stakeholders.
“Both proposals are intended to address the well-documented reliability challenges created by New England’s increased reliance on natural gas-fueled generation. Both are also intended to be stop-gap measures until revised incentives for capacity resources become fully effective in 2018,” the filing states.
The primary difference between the two proposals is what types of resources are eligible to receive compensation. NEPOOL’s proposal is based on the design of last winter’s program, which provided compensation for unused oil or liquefied natural gas remaining at the end of the winter and adds demand response.
ISO-NE’s proposal includes compensation for unused oil or LNG fuel and would also compensate nuclear, hydro, biomass and coal-fired resources but does not include DR.
FERC had ordered the RTO to develop a market-based approach for the 2015-2016 season in response to a complaint by the New England Power Generators Association. The commission in April reversed course when it determined the plan might not be finalized in time. (See FERC Backtracks from ISO-NE Winter Reliability Order.) It directed the RTO and its stakeholders to keep trying to develop a solution.
The petition asks FERC for an effective date for next winter’s program of Sept. 14.