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Market Monitoring Mitigation Redesign: Enhancing Operational Efficiency

This synopsis outlines the NCPC Mitigation Redesign. It includes eliminating general threshold mitigation, adding manual dispatch and commitment mitigation, and setting limits for start-up and no-load fees to enhance efficiency. The commitment mitigations will utilize the "Low Load Cost" test criteria. Manual dispatch and commitment regulations are specified, along with the guidelines for start-up and no-load fees. Mitigation types are summarized for clarity and ease of understanding.

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Market Monitoring Mitigation Redesign: Enhancing Operational Efficiency

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  1. August 10, 2013 Mario DePillis and Bob Laurita Internal Market monitoring Mitigation under NCPC Redesign

  2. Synopsis • Eliminating Day-Ahead General Threshold Mitigation • Adding Manual Dispatch Mitigation • Adding Manual Commitment Mitigation • Start-Up and No-Load Fee Offer Limits (and Mitigation)

  3. Manual Commitment and Dispatch • Manual Commitment • Applies to manual decisions made byoperators • Same low load cost test as other commitment mitigations • Manual Dispatch • Applies if a resource is both manually dispatched and out of merit • Out of Merit resources have LMPs below their offer for the desired dispatch point (DDP) megawatts • Ends when resource becomes in merit or resource returns to Eco Min

  4. Commitment Mitigations • The three types of commitment mitigation will use the same “Low Load Cost” test • Low Load Cost test will be calculated using and commitment period known at the time of commitment as well as offer parameters and reference levels • Duration of commitment mitigation is the duration of commitment period

  5. Start-Up and No-Load Fees Overview • Limited to 200% above reference level • eMarket Bidding interface limit • Section III.A.6 • Standing offers (no bid made for the day) • Start-Up or No-Load Fees can become greater than 200% of Reference Levels when fuel prices decline • Failure treated with mitigation • Section III.A.5.5.7.

  6. Summary of Mitigation Types

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