Disclaimer for Customer Training: ISO New England (ISO) provides training to enhance participant and stakeholder understanding. Not all issues and requirements are addressed by the training. Consult the effective Transmission, Markets and Services Tariff and the relevant Market Manuals, Operating Procedures and Planning Procedures for detailed information. In case of a discrepancy between training provided by ISO and the Tariff or Procedures, the meaning of the Tariff and Procedures shall govern.
May 2, 2017 WebEx Broadcast
New Capacity Qualification for Demand Resources For the Twelfth Forward Capacity Auction (FCA 2021-2022)
Jennifer Engelson Resource Adequacy
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Acronyms CCP
capacity commitment period
LSR
local-sourcing requirement
COD
commercial operation date
MR
Market Rule
CP
commitment period
MW
megawatt
CPS
critical path schedule
M&V
measurement and verification
DRCR
demand response capacity resource
NCQP
new capacity qualification package
FA
financial assurance
ORTP
offer-review trigger price
FCA
Forward Capacity Auction
PP
Planning Procedure
FCM
Forward Capacity Market
QDN
Qualification Determination Notification
FCTS
Forward Capacity Tracking System
QPCRD
qualification process cost reimbursement deposit
ICR
Installed Capacity Requirement
SOI
show of interest
IMM
Internal Market Monitor
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Objectives • Identify how to complete the new capacity qualification package (NCQP) forms for demand resources for the 2021-2022 Forward Capacity Auction (FCA #12) • Review the requirements for each component of the NCQP • Summarize ISO New England’s review process for the NCQP • Discuss how to submit the NCQP using the Forward Capacity Tracking System (FCTS)
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Topics • Timeline and ISO Review Process • New Capacity Qualification Package ‒ ‒ ‒ ‒ ‒
Critical Path Schedule Source of Funding Customer Acquisition Plan Measurement and Verification Plan and Supporting Documents Elections and Offer Review Trigger Price Challenge (optional)
• New Capacity Qualification Package Submission into FCTS • Qualification Determination Notification (QDN) for FCA #12
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Market Rule and Planning Procedure References The governing documents for the qualification process are Market Rule 1, Section III.13.1, “Forward Capacity Auction Qualification” and Planning Procedure 10, “Planning Procedure to Support the Forward Capacity Market”
For your convenience, references to these sections of the MR and PP 10 will be displayed on the bottom left of the slide
MR 1, Section III.13.1.4 | PP 10, Section 5 ISO-NE PUBLIC
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Potential Changes for FCA #12 Recent and Proposed Changes
Reference
Real-Time Emergency Generation
New demand resources may not qualify as real-time emergency generation
ER17-925-000
Electing CPS Monitoring
ER16-2451-000
Critical path schedule (CPS) election deadline for a new capacity resource
Filing of CONE and ORTP
Updates to cost of new entry (CONE), Net CONE, and offer-review trigger price (ORTP) values used in the Forward Capacity Market
ER17-795-000
Pending FERC approval of the January 13, 2017 filing ISO-NE PUBLIC
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Current Demand Resource FCM Qualification Forms Markets and Operations > Markets Data and Information > Forward Capacity Market
Current forms posted to ISO website in April 2017; use Published Date filter to find these forms quickly ISO-NE PUBLIC
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Timeline and ISO Review Process
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FCA #12 Summary of Key Deadlines Date
Event
June 19, 2017
New capacity qualification deadline
September 29, 2017
Qualification Determination Notification (QDN) for FCA #12
September 29, 2017
Market participant status deadline
October 6, 2017
Renewable technology election deadline
October 16, 2017
Composite offer deadline
October 24, 2017
FCA qualification withdrawal deadline
October 30, 2017
Financial assurance FCM deposit for accepted new capacity resources due
November 7, 2017 January 22, 2018 February 5, 2018
ISO submits results of qualification process to Federal Energy Regulatory Commission (FERC) Participant posts non-commercial capacity financial assurance (FA) for accepted new capacity resources FCA #12 begins Participant Deliverable
ISO Deliverable
View or download the Master Forward Capacity Auction #12 Schedule Timeline ISO-NE PUBLIC
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New Capacity Qualification Package Review Process • ISO will review the project sponsor’s qualification package for consistency with show of interest (SOI) • Material changes between SOI and qualification package are not allowed • Material changes include but are not limited to: ‒ Demand resource type ‒ Load zone and/or dispatch zone [demand response capacity resource (DRCR) only] ‒ Demand reduction value (DRV) change of more than ± 30% ‒ Measure type (energy efficiency, distributed generation, load management) ‒ Interconnection status of a distributed generation project MR1 Section III.13.1.4.2.3. ISO-NE PUBLIC
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New Capacity Qualification Package Review Process, continued
• ISO review criteria: ‒ New capacity qualification package (NCQP) meets minimum requirements set forth in Market Rule 1 and ISO New England Manuals ‒ NCQP provides sufficient information to determine viability of project ‒ Measurement and Verification (M&V) Plan is complete and complies with ISO New England Measurement and Verification of Demand Reduction Value from Demand Resources Manual (M-MVDR) and Registration and Performance Auditing Manual (M-RPA)
• ISO may consult with project sponsor to seek clarification, gather additional information, and/or address questions or concerns arising through review process
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New Capacity Qualification Package Components
Data Entry to FCTS
Forms Uploaded to FCTS
Critical Path Schedule (CPS)
Source of Funding Plan
Capacity Commitment Period Election
Customer Acquisition Plan
Rationing Election
Measurement & Verification Plan*
Offer Review Trigger Price
Supporting Measurement & Verification Documents
*Applicable to on-peak and seasonal peak resources only
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Completing, Saving, and Submitting Forms General Instructions
Tips for Completing Forms
• Do not reformat any dynamic pdf forms • Submit one form per project with appropriate identifying information • Incomplete forms may result in disqualification • General instructions are detailed here
•
or buttons in top left corner of tables add or remove rows as needed • Text boxes allow for entry of information beyond the field of view, though limits apply where specified • Multiple field boxes may be selected if more than one applies
Dynamic PDF forms require Adobe Acrobat Reader version 9 or higher Get the Free Adobe Reader
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New Capacity Qualification Package Critical Path Schedule
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Key Date
Critical Path Schedule
June 19, 2017
Critical path schedule (CPS) is a set of milestones describing the timeline for project completion • Analyzed during qualification process to ensure project is deliverable by start of relevant capacity commitment period (CCP) • Tracked after FCA to monitor project build-out and calculate qualified capacity for reconfiguration auctions and bilateral periods based on expected commercial operation date
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Critical Path Schedule Simple CPS - Requirements Three milestone dates
Summer
Winter
December 31, 2018
X MW
X MW
December 30, 2019
X MW
X MW
Full Project MW
Full Project MW
Commercial operation date (COD)
• Commercial operation date (COD) for FCA #12 must be after June 5, 2017 (existing capacity qualification deadline) and no later than May 31, 2021 • Projects may commercialize all at once (i.e., new distributed generation) or gradually over time (i.e., utility- or merchant-based energy efficiency) • Pipeline analysis required for projects delivering 30% or less of the project’s demand reduction value (DRV) by second milestone (December 30, 2019 for FCA #12) MR1 Section III.13.1.4.2.2.4.2 ISO-NE PUBLIC
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Critical Path Schedule (CPS) Full CPS - Requirements
• Completion dates required for each expected milestone • Supporting documentation must be provided upon completion of each milestone (including at the time of NCQP submission if any milestone dates are in the past)
MR1 Section III.13.1.4.2.2.4.1 ISO-NE PUBLIC
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New Capacity Qualification Package Source of Funding
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Source of Funding Plan • Identifies funding allocated to cover estimated costs of the project’s entire life cycle, including but not limited to: ‒ ‒ ‒ ‒ ‒
Customer acquisition Engineering analysis Equipment purchases and installation Performance audits Commercial operation and maintenance
• Describes source of funding (i.e., public, private, third party) • May include information on how similar past projects have been successfully funded
MR1 Section III.13.1.4.2.2.2 ISO-NE PUBLIC
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Source of Funding Form
Public Funds Private Equity Third Party Equity Third Party Finance ISO-NE PUBLIC
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Source of Funding Plan 1. Identify source of funds 2. Provide credit rating or description of capitalization 3. Describe the project’s general funding strategy 4. Describe successful funding strategies used in prior projects 5. Identify personnel responsible for securing and maintaining funding and their relevant experience 6. Identify financial partners, including name, location, relationship, and key personnel 7. Budget Details ISO-NE PUBLIC
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Source of Funding Plan, continued
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Questions?
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New Capacity Qualification Package Customer Acquisition Plan
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Customer Acquisition Plan Purpose of Customer Acquisition Plan is to describe project’s target market and customer acquisition strategies
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Customer Acquisition Plan, continued
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Customer Acquisition Plan Strategy by Class
How many MW are being acquired concurrent to MW for projects on monitoring from the same pool of customers?
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Customer Acquisition Plan 1. Customer Type and Customer Classes. (check all that apply) 2. Describe the market potential and expected pool for the project. (1000 characters max) 3. Provide the following metrics describing the project’s customer acquisition strategy by class. 4. Describe your customer retention strategy and predicted customer loss rate. 5. Describe the standard customer contract, including key terms, length, and conditions for performance. 6. Describe your marketing strategy including process flows, data management, and strategic partnerships. 7. Describe the standard qualifications of sales, marketing, and engineering personnel. 8. Provide an expected timeline for the customer acquisition process. 9. Provide the file names and description of any additional supporting documentation. Actual files may be submitted with the project’s M&V supporting documents. (Click +/- to add more rows) ISO-NE PUBLIC
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Customer Acquisition Plan, continued
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Customer Acquisition Plan, continued
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New Capacity Qualification Package Measurement and Verification Plan and Supporting Documents
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Measurement and Verification Plan Required for On-Peak and Seasonal Peak Demand Resources Only • Describes methods, assumptions, and measurements that will be used to demonstrate performance of demand resource • Used to validate that projected reductions will be measurable and verifiable • Must comply with requirements contained in ISO New England Manual for Measurement and Verification of Demand Reduction Value from Demand Resources (M-MVDR) M-MVDR Current Version: Revision 6 – May 30, 2014 http://www.iso-ne.com/participate/rules-procedures/manuals
III.13.1.4.2.2.3. ISO-NE PUBLIC
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General Instructions for Measurement and Verification Plan • Use the
to add and delete rows as needed
• Check boxes allow you to select more than one response • Radio buttons require you to make only one selection • Certain sections require confirmation that activity will comply with detailed requirements specified in M-MVDR • Participants may propose alternative methodologies that will be subject to ISO review for compliance with M-MVDR and the Tariff ‒ Supporting documents may be supplied to provide more detail on alternative methodologies, including processes, variables, and calculations ISO-NE PUBLIC
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Measurement and Verification Plan Form
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Section I: Equipment, Measure, and Practice Detail
Metered Stipulated
Commercial Industrial Residential
No Yes
Distributed Generation Energy Efficiency Load Management
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Section II: Project General Assumptions
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Section III: Measurement and Verification Approach
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Section IV: Establishing Baseline Conditions/Metering
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Section V: Statistical Significance (A)
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Section V: Statistical Sampling (B)
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Section VI: Demand Reduction Value Calculations
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Section VII: Monitoring Parameters and Variables
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Section VIII: Measurement Equipment Specifications
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Section IX: Monitoring Frequency and Duration
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Section X: Data Validation, Retention, and Management
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Section XI: Performance Reporting
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Section XII: Independence and Auditing (A)
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Section XII: Independent Annual Certification (B)
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Section XIII: M&V Supporting Documents
Will also be asked to provided justification for continued use of Supporting Documents published more than five years prior to submission of Measurement and Verification Plan
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Section XIV: Responsible Parties
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Supporting Measurement and Verification Documents • Supporting documents should be submitted via FCTS
• Relevant documents may include:
‒ File formats: doc, docx, xls, xlsx, or pdf may be placed in a zip file if multiple files
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‒ Technical reference documents ‒ DRV calculations ‒ Market analyses
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Previously Approved M&V Documents ISO will email project sponsors a table containing a list of all M&V supporting documents submitted and approved for FCA #11 by May 22, 2017 1. Complete Resource and Project Information
5. Zip this file with any remaining supporting documents not listed 3. Complete Document Publication Date
4. Provide a justification if file is over 5 years old
2. Check documents you wish to use in FCA #12
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New Capacity Qualification Package Elections and Offer Review Trigger Price Challenge (Optional)
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Capacity Commitment Period Election
Key Date June 19, 2017
• New demand resources may elect to have capacity supply obligation and clearing price of a cleared offer continue to apply after capacity commitment period of initial award ‒ May lock in for one to seven years in one-year increments only ‒ If no election is made by new capacity qualification deadline, default value of one capacity commitment period will apply
• Proposed FCA #12 project that elects to have FCA results apply for multiple capacity commitment periods may not be part of a composite offer • CCP elections will be reverted to one year for qualified resources under renewable technology resource exemption Additional training on Composite Offers is available here MR1 Section III.13.1.4.2.2.5 ISO-NE PUBLIC
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Rationing Election • Capacity resources may elect to be rationed down to a precise MW value instead of their full offered capacity in the event they happen to be the marginal unit • Offers from resources that do not elect rationing will only be accepted or rejected in whole • New capacity qualification package is the only place to elect rationing if desired
MR1 Section III.13.1.4.2.2.6 ISO-NE PUBLIC
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Offer-Review Trigger Price • New capacity resources are required to have an offer-review trigger price (ORTP) based on technology type • Offers in FCA at prices equal to or above relevant ORTP will not be subject to further review by Internal Market Monitor (IMM) • Requests to submit offers in FCA at prices below relevant ORTP must be submitted with new capacity qualification package (NCQP) WebEx recorded training for the IMM FCM New Capacity Offer Price Development held on February 16, 2017 For details on specific ORTP, review FCM Parameters posted on ISO website ISO-NE PUBLIC
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Questions?
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New Capacity Qualification Package Submission into Forward Capacity Tracking System
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FCTS Technical Requirements • User interface that manages information for resources participating in FCM • NCQP submittals must be made though FCTS • Digital certificate is required ‒ Contact your IT security administrator (SA) to provide you with one of the following appropriate roles under the FCTS application: • External Forward Capacity Maintainer • External Forward Capacity Viewer
• Existing participants should renew their certificates if expired • To ensure full functionality of FCTS, use Internet Explorer 11 or newer • No other required hardware or software requirements • Contact Customer Support with any questions or technical issues
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SMD Applications Home Page Forward Capacity Tracking System (FCTS) Access
Click to access Forward Capacity Tracking System
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In this training, note that commitment periods and other display dates are for illustration purposes only For FCA #12, select CP 2021-2022
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Accessing a Project in FCTS
Lead Participant (XX)
3. Click on desired Project
1. Click on Commitment Period
2. Click on Proposal Summary
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Accessing a Project in FCTS, continued
4. Click on New Qualification tab
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2. Review Show of Interest
5. Download copy of show of interest
6. Update show of interest demand reduction values (DRV) values if needed DRV may only change by +/- 30% ISO-NE PUBLIC
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2. Review Show of Interest, continued
7. Click Next to continue; do not edit this information
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2. Review Show of Interest, continued
8. Click Next to continue
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7. Update Summer DRV and Winter DRV if needed
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2. Review Show of Interest, continued
9. Click Next to advance through the SOI until you reach the final Summary page pictured here
10. Click Submit ISO-NE PUBLIC
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2. Review Show of Interest, continued
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3. Critical Path Schedule
11. Click Create to enter Critical Path Schedule
Projects < 5 MW will be directed to enter a Simple CPS (proceed to slide 70) Projects ≥ 5 MW will be directed to enter a Full CPS (skip to slide 72)
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3. Critical Path Schedule, continued Create Simple CPS
12b. Enter COD
12a. Enter Target Date MW
Must be after the relevant existing capacity qualification deadline and prior to the start of the relevant CCP
Target Date (TD) Guidelines: • TD 2 MW must be ≥ TD 1 MW • If COD is prior to either TD 1 or 2, TD MW falling after COD must equal full COD MW
12c. Upload Supporting Documentation
12d. Click Submit ISO-NE PUBLIC
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3. Critical Path Schedule, continued Successfully Submitted Simple CPS
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3. Critical Path Schedule, continued Create Full CPS – Step 1
13a. Complete Major Permits data
13b. Complete Financing data
13c. Complete Major Equipment data
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3. Critical Path Schedule, continued Create Full CPS
13e. Enter Commercial Operation Date Must be after relevant existing capacity qualification deadline and prior to start of relevant CCP 13d. Enter Commissioning Completion Date and Substantial Site Construction Date
13f. Click Next
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3. Critical Path Schedule, continued Create Full CPS – Step 1 continued
If a date on full schedule is in the past, upload documentation to demonstrate completion
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3. Critical Path Schedule Successfully Submitted Full CPS
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4. Additional Requirements
14. Use Update buttons to upload all required documentation
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4. Submit Additional Requirements Upload Documentation
15. Click Browse to search for file
16. Click Submit to upload file
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4. Submit Additional Requirements Successful Upload
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5. Pre-FCA Elections
17. Click Update to complete Multiple CCP and Rationing Elections
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5. Pre-FCA Elections, continued
18. Select number of years for CSO and clearing price to apply
19. Elect whether or not resource may be rationed
20. Click Submit
If you elect rationing, you will be asked to specify rationing limit
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5. Pre-FCA Elections, continued
As long as NCQP submission window is open, you may continue to update elections
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6. Resource Offer Floor Price Challenge Challenge
Click Submit OFP Request
Current Offer Floor Price will populate automatically
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6. Resource Offer Floor Price, continued Challenge
Enter requested $/kW-Month
Upload Cost Justification
Upload additional Supporting Documentation if applicable
Click Submit
WebEx recorded training for the IMM FCM New Capacity Offer Price Development held on February 16, 2017 ISO-NE PUBLIC
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6. Resource Offer Floor Price Request, continued
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Qualification – Key Dates
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Qualification Determination Notification
Key Date September 29, 2017
Qualification Determination Notifications (QDNs): • Published to each project sponsor via the FCTS • Indicate whether participation in the FCA is accepted or denied • Based on reviews and analyses performed through September 29, 2017, for FCA #12 Two separate QDNs may be issued: • System Planning • Internal Market Monitor
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Qualification Determination Notification System Planning
Key Date September 29, 2017
Positive determinations will contain: • Summer and winter qualified MW • Overlapping interconnection analysis results if applicable • Qualification conditions if applicable
CP 20XX-XX-FCA SP_QDN_FCA11.pdf
05/31/20XX
Negative determinations
By September 29, 2017, ISO will post each project sponsor’s QDN via the FCTS under the Summary tab
will contain description(s) of why the project was not accepted
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Qualification Determination Notification Internal Market Monitor
Key Date September 29, 2017
Internal Market Monitor (IMM) will issue a separate QDN through FCTS regarding final resource-specific offer floor price
CP 20XX-XX-FCA
By September 29, 2017, the QDN from IMM will be posted in FCTS under the Offer Floor Price tab
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Becoming a Market Participant
Key Date September 29, 2017
A project sponsor must become a market participant by September 29, 2017, to participate in FCA #12 (30 days prior to financial assurance deposit deadline) To become a market participant, project sponsors must submit: • Completed membership application • Other documentation as required
Membership information can be found on ISO’s New Customer Registration web page
Market participant types: • Full market participant • Provisional market participants Process could take up to three months to complete MR 1, Section III.13.1 ISO-NE PUBLIC
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Project Sponsor Withdrawal Deadline To withdraw from the qualification process, projects sponsors must: • Withdraw anytime prior to October 24, 2017 (three business days before the submission of the financial assurance deposit) • Must provide notification of such withdrawal to ISO via Ask ISO Reconciliation of qualification process cost reimbursement deposit (QPCRD) associated with the project is done upon withdrawal ISO-NE PUBLIC
Key Date October 24, 2017
Any withdrawal shall be irrevocable
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Financial Assurance Requirements
Key Dates October 30, 2017 January 22, 2018
All qualified non-commercial projects eligible to participate in an FCA must post financial assurance as follows: Date
Time
Amount
October 30, 2017
8:00 a.m.
$2 x qualified kW-month
January 22, 2018
8:00 a.m.
$[FCA starting price - 2] x qualified kW-month
• Financial assurance requirement is determined based on ISO’s Financial Assurance Policy in Section I of the ISO Tariff • Financial Assurance Basics and Financial Assurance for the Forward Capacity Market are web-based training available in ISO-TEN ISO-NE PUBLIC
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Additional Information on Energy Storage Resources Webinars Energy Storage Market Participation Overview Presentation April 11, 2017 (presentation and recording) Forward Capacity Market Qualification for Energy Storage April 28, 2017 (presentation and recording)
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References • ISO website: www.iso-ne.com • Participate > Rules and Procedures > Transmission, Markets, and Services Tariff • Participate > Rules and Procedures > Transmission, Markets, and Services Tariff > Market Rule 1 • Access to the Forward Capacity Tracking System: https://smd.iso-ne.com/ • FCM training materials are available on the ISO website at: Participate > Training > Training Materials [Document Type: FCM Training Materials]
Markets and Operations > Markets Data and Information > Forward Capacity Market
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Reference Documents Transmission, Markets & Services Tariff • Market Rule 1 - Section III.13 and III.14 ISO New England Manuals • Measurement and Verification of Demand Reduction Value from Demand Resources (M-MVDR) • Registration and Performance Auditing (M-RPA) ISO Operating Procedures • OP-14: Technical Requirements for Generators, Demand Resources, and Asset Related Demand • OP-18: Metering and Telemetering Criteria
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Questions?
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Customer Support Information Ask ISO (preferred) • Self-service interface for submitting inquiries • Accessible through the SMD Applications Homepage • Requires a valid digital certificate with the role of Ask ISO/External User (Contact your security administrator for assistance) Other Methods of Contacting Customer Support Method
Contact Information
Availability
Email
[email protected]
Anytime
Phone*
(413) 540-4220
Monday through Friday 8:00 a.m. to 5:00 p.m. (EST)
Pager (emergency inquiries)
(877) 226-4814
Outside of regular business hours
* Recorded/monitored conversations ISO-NE PUBLIC ISO-NE PUBLIC
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Evaluations
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