Implementation of new Regulation Market to bring changes to settlements and MIS reporting
ISO-NE offers resources to help market participants prepare
ISO New England will be implementing changes to the Regulation Market on March 31, 2015. The changes comply with Federal Energy Regulatory Commission (FERC) Order No. 755, Frequency Regulation Compensation in Organized Wholesale Power Markets, which requires a two-part payment methodology to select and compensate frequency regulation resources.
Major settlement-related market changes include the following:
- Market participants will be able to submit individual resource-specific offers for both regulation capacity (which could also include opportunity cost) and regulation service (mileage)
- These resource-specific offers will then be used to calculate hourly prices for both regulation capacity and regulation service.
- The hourly compensation for regulation capacity and regulation service will be adjusted for performance through a factor called Regulation Interval Performance Score (RIPS). View slides from the Regulation Market changes webinar held January 2015, for details on the RIPS determination.
- The Capacity-to-Service Ratio (“Q” factor) and regulation self-schedule concept will be eliminated.
- The allocation methodology for regulation charges does not change and will still be allocated pro-rata on hourly real-time load obligation.
- The Regulation Market payments and charges will be reported on new Market Information Server (MIS) Reports. The current set of MIS Reports (SD_REGDTLASM and SR_REGASM) will be retired and a set of two new MIS Reports (SD_REGDTL and SR_REGSUM) will take its place.
- The new Regulation MIS Reports will include Divisional Accounting reporting.
- Market participants will have the option to choose to have non-generation resources dispatched using an energy-neutral dispatch method.
Prepare for Implementation
The ISO offers several resources for market participants to prepare for the settlement changes that take effect March 31. You can view:
- A presentation on Regulation Market Settlements that provides detail about the calculation of credits and charges in the Regulation Market
- MIS Report templates, descriptions and sample files for the new Regulation Market
Offers in the new Regulation Market must be submitted via eMarket software in the new format starting March 31, 2015. Market participants are advised to revise their systems before the cutover and test changes in the eMarket sandbox environment. Learn more.