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Updates to Schedule 2 Business Procedure: Electric Storage Facility Revisions

This document outlines proposed revisions to Schedule 2 Business Procedure, focusing on the integration of Electric Storage Facilities (ESFs) and clarifying their compensation in the Capacity Cost Compensation Program. The updates include grammar revisions, clarification on the compensation method, and provisions for Binary and Continuous ESFs. Additionally, two new appendices will be created for Qualified Reactive Resource Waiver and Termination Requests. These changes aim to enhance participation in ISO-NE's energy markets and await FERC approval.

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Updates to Schedule 2 Business Procedure: Electric Storage Facility Revisions

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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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