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February 23, 2019 | Westborough, ma

February 23, 2019 | Westborough, ma. Kory Haag. (413 ) 535-4064 | khaag@iso-ne.com. Revisions to Schedule 2 Business Procedure to include Electric Storage Facility Reactive Resources and Other Administrative Changes. Schedule 2 VAR Capacity Cost Compensation Updates. Revision 1.

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February 23, 2019 | Westborough, ma

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  1. February 23, 2019 | Westborough, ma Kory Haag (413) 535-4064 | khaag@iso-ne.com Revisions to Schedule 2 Business Procedure to include Electric Storage Facility Reactive Resources and Other Administrative Changes Schedule 2 VAR Capacity Cost Compensation Updates Revision 1

  2. In October 2018, the ISO, joined by NEPOOL, filed with FERCproposed revisions to the ISO-NE Open Access Transmission Tariff which created multiple constructs for storage devices to fully participate in the ISO Day-Ahead and Real-TimeEnergy Markets • Currently awaiting a FERC Order on the proposed revisions (Docket No.ER19-84-000) • In addition to the implementation of the constructs for storage devices, in recent years, other non-generator dynamic Reactive Resources (e.g. synchronous condensers, Static VARCompensators, STATCOMs)have been proposed or constructed • Implementation of the Electric Storage Facility (ESF) construct requires modifications to the Schedule 2 Business Procedure to clarify compensation of ESF resources • Other miscellaneous changes include grammar, references, and form additions • Related revisions to Section III.1.5.3 of the Tariff, OP-23, and OP-23 Appendix G to accommodate the introduction of ESFs as well as non-generator dynamic Reactive Resources are being discussed at the Reliability Committee

  3. Background

  4. Overview of Electric Storage Facilities • Two types of ESFs: Binary and Continuous • Binary Storage Facilities require time to transition between consuming and producing energy • Continuous Storage Facilities can transition from full consumption to full production of energy (or vice versa) within 10 minutes • Electric Storage Facilities will be modeled as one of the following: • Binary: Generator Asset and Dispatchable Asset Related Demand (DARD) • Continuous: Generator Asset, DARD, and Alternative Technology Regulation Resource

  5. Proposed Revisions associated with ESF resources & Miscellaneous Clean-Up Revisions

  6. Summary of Proposed Changes to Schedule 2 Business Procedure • Update document references and modify language for grammar and clarity throughout • Provide clarity on method of compensating Electric Storage Facilities in the Capacity Cost Compensation Program • ESFs will be compensated for Generator Asset capabilities as audited through Operating Procedure No. 23 – Resource Auditing • Proposed revisions to OP23 regarding incorporating Reactive Capability Audits for Binary Storage Facilities and Continuous Storage Facilities are being discussed with the Reliability Committee • https://www.iso-ne.com/event-details?eventId=137633 • All calculations for compensation are unchanged • Create new Appendices B and C for Qualified Reactive Resource (QRR) Waiver Request and QRR Termination Request Forms • These forms are currently on the ISO website as stand-alone documents • No functional changes to these forms

  7. Conclusion The proposed changes • Update references to other procedures • Clarify language throughout the document • Introduce provisions for Electric Storage Facilities • Create two new appendices (B and C) for Waiver and Termination Requests

  8. Stakeholder Schedule Revision 1

  9. Kory Haag (413) 535-4064 | khaag@iso-ne.com

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