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Internal Market Monitoring Mitigations under NCPC Redesign

This document outlines recent changes in internal market monitoring mitigations spearheaded by Mario DePillis and Bob Laurita. Key updates include the elimination of Day-Ahead General Threshold Mitigation, alongside the introduction of Manual Dispatch and Commitment Mitigations. The protocols detail how these types of mitigations apply to manually dispatched resources that are out of merit and subject to specific cost tests. Additionally, it addresses limits on start-up and no-load fees, ensuring they do not exceed 200% above reference levels.

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Internal Market Monitoring Mitigations under NCPC Redesign

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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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