Simultaneous DR-EG Resource Audits

1. Simultaneous DR-EG Resource Audits ISONE DRWG – November 6, 2013

2. Market Rule • Market Rule 1, III.13.6.1.5.4.2 (c) • General Auditing Requirements for Demand Response Capacity Resources • An audit of a Real-Time Emergency Generation Resource must be performed simultaneously with the audit of any Demand Response Resources containing Demand Response Assets that are located behind the same Retail Delivery Point as the Real-Time Emergency Generation Assets mapped to the Real-Time Emergency Generation Resource. When the output of the Real-Time Emergency Generation Asset is greater than the Demand Response Baseline, adjusted pursuant to Section 8B.5, of the Demand Response Asset located at the same Retail Delivery Point and Net Supply is produced, the Net Supply is reduced by the difference between the Real-Time Emergency Generation Asset’s output and the adjusted Demand Response Baseline of the Demand Response Asset. Presentation Title

3. July 2013 Event and Audit Dispatch • RTDR resources in ROP zones dispatched via OP-4 Action 2 from 13:35 to 20:35 on July 19, 2013 • For any RTDR resource, in which an RTDR asset was mapped that was behind the same retail delivery point as an RTEG asset, there was no option to select the first hour of the July 19 event dispatch as a Seasonal Audit • These RTDR resources were subsequently dispatched for a Seasonal Audit (along with their corresponding RTEG resources) during the following week • Generated a number of questions and complaints from RTDR customers • We just curtailed for 7 hours last week • Audit performance has no impact on payments this year Presentation Title

4. One Possible Alternative… • Market Participant has two resources • 33333 - RTDR in Rhode Island • Includes Asset 55555 behind same delivery point as Asset 66666 • 44444 – RTEG in Rhode Island • Includes Asset 66666 behind same delivery point as Asset 55555 • Resource audits requested for July 2014, but OP-4 Action 2 initiated on June 30, 2014 from 1p to 5p • Asset 55555 event performance is 225 kW, first hour performance is 250 kW • PROPOSED • Allow Resource 33333 to select first hour of OP4 event performance as seasonal audit • Includes 250 kW contribution to resource DRV from Asset 55555 • Allow Resource 44444 to audit separately in July without dispatching Resource 33333 • DRV contribution of Asset 66666 will be limited based on prior performance of both assets behind same delivery point Presentation Title

5. One Possible Alternative… • PRIOR SIMULTANEOUS PERFORMANCE • Prior maximum simultaneous performance of the two assets behind the same delivery point was 400 kW. • Since DR asset (55555) audit performance was 250 kW, the EG asset (66666) audit result will be capped at 150 kW (400 kW max – 250 kW DR audit) • If no prior simultaneous performance, then EG asset audit result capped at the lesser of • Average metered load for Asset 55555 during one-hour audit (i.e. remaining load at to curtail at delivery point) • Max Gen value as registered in CAMS Presentation Title

6. Proposal • Make request to the Markets Committee on behalf of the DRWG to refer the Simultaneous DR-EG Audit issue to the DRWG to consider potential rule changes as described. Presentation Title