NEPOOL approved a set of tariff changes related to ISO-NE’s Day-Ahead Ancillary Services Initiative (DASI) proposal at the August Participants Committee (PC) meeting, held virtually Thursday. The vote gave final NEPOOL approval of the DASI proposal, as the changes previously had been approved by the Market, Reliability and Transmission Committees.

“ISO New England has been working with stakeholders on … DASI for almost a year and we’re pleased NEPOOL approved DASI,” ISO-NE told RTO Insider in a statement following the vote. “We plan to prepare and file our DASI proposal with FERC in October of this year. Our plan is to have DASI integrated into New England’s wholesale markets by March 1, 2025.”

The DASI proposal is intended to procure and price ancillary services to ensure the reliability of the day-ahead market. (See ISO-NE Plans 2025 Launch for Day-Ahead Ancillary Services Initiative.)

In a July memo, ISO-NE wrote that the current Day-Ahead Energy Market, which clears just one energy product based on supply offers and demand bids, leaves gaps when unforeseen generation and infrastructure issues arise and when the market clears less supply than forecasted load.

“The DASI proposal creates a Day-Ahead Ancillary Services Market that, together with today’s Day-Ahead Energy Market, creates a single, jointly optimized Day-Ahead Market,” ISO-NE wrote. “These new day-ahead ancillary services will encourage reliable resource performance and prepare the system on a day-ahead timeframe with the flexibility needed to manage operational uncertainties.”

While approving the proposal, members of the Markets Committee have asked ISO-NE to reassess the strike price adder when more data is available following implementation. NEPOOL members also have raised concerns related to the DASI’s effects on peaker plants, as well as concerns about the elimination of the Forward Reserve Market (FRM). ISO-NE plans on removing the FRM when DASI takes effect in March 2025.

“The FRM is no longer necessary in its suite of markets, given the development of the new Day-Ahead Ancillary Services and in light of the significant transmission and market improvements that have been made over the last decade to relieve locational constraints and reward resource flexibility and performance,” ISO-NE said.

Also at the August PC meeting, the committee voted to approve ISO-NE’s proposed Order 881 compliance changes drafted in response to a June 15 FERC order (ER22-2357), as well as tariff changes related to FERC’s request for further compliance with Order 2222 (ER22-983). (See FERC Gives ISO-NE Homework on Order 2222, Order 881 Timelines Need Explaining, FERC Says.)