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Enhancing Real-Time Demand Response in the ISO-NE Forward Capacity Market

This proposal outlines alternative strategies to improve real-time demand response (RTDR) in the ISO New England (ISO-NE) Forward Capacity Market (FCM). It suggests full capacity payments for RTDR, separate consideration from other resources, high priority redesign parameters, and integration of all RTDR into the capacity market. The focus is on maximizing capacity while maintaining the efficiency of current programs. The document also poses questions regarding the best forum for considering alternatives and the necessary timing for decision-making leading up to February 2008. The appendix presents ISO-NE's experience on August 2, 2006, detailing operational procedures and actions taken to manage demand response effectively.

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Enhancing Real-Time Demand Response in the ISO-NE Forward Capacity Market

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  1. Alternative Proposal for Real-Time Demand Response in the Forward Capacity Market ISO New England Demand Resources Group October 19, 2006

  2. Summary of Existing Rules for RT DR in ISO-NE get more

  3. Summary of ISO-NE Proposed Rules for RT DR in FCM get more

  4. Summary of Alternative Proposal for RT DR in FCM get more • Supported by: Commonwealth of Massachusetts Division of Capital Asset Management, Conservation Law Foundation, ConsumerPowerline, Constellation NewEnergy, DemandDirect, Energy Curtailment Specialists, EnerNOC, North America Power Partners, Pinpoint Power, Verso Paper

  5. Next steps • Consider other alternatives • 100% capacity payment of all RT DR • Separate consideration of RT DR from ODR • High priority re-design parameters • Integrate all RT DR in capacity market including FCA • Do not increase hours of RT DR from current well functioning programs – maximize RT DR capacity provided • Questions: • What is best forum/venue to fairly consider these alternatives? • What is needed timing for each step in decision making – working backwards from Feb 2008?

  6. APPENDIX get more

  7. ISO-NE Experience on August 2, 2006

  8. Operating Procedure 4 Actions • ACTION 6 (An ISO responsibility): • Begin to allow the depletion of 30-minute reserve. • ACTION 9 (ISO responsible for plants, Local Control Centers for office complexes.) • Request voluntary load curtailment of Market Participants’ facilities in the New England Control Area. • Interrupt Real-Time Demand Response – 30 Minutes or Less Notification (that does not require a voltage reduction to be implemented). • Implement a Power Watch. • ACTION 12 (ISO responsible for Demand Response, Local Control Centers for voltage reduction) • Implement a voltage reduction of five percent (5%) of normal operating voltage requiring more than 10 minutes to implement. • Interrupt Real-Time Demand Response – 30 Minutes or Less Notification (that requires a voltage reduction to be implemented). • (An ISO responsibility) Alert the New York Independent System Operator (NYISO) that sharing of reserves within Northeast Power Coordinating Council (NPCC) may be required. get more

  9. OP4 Actions, 2001-2006 Source: http://www.iso-ne.com/sys_ops/op4_action_archiv/index.html

  10. OP4 Actions, 2001-2006

  11. CT and SWCT: Real-Time 30 Minute DR, 2004-06 Source: ISO-NE DRWG meeting materials.

  12. Operable Capacity Margin – Summer, 50/50 get more

  13. Operable Capacity Margin – Summer, 90/10 get more

  14. Operable Capacity Margin – Winter, 50/50 get more

  15. Operable Capacity Margin – Winter, 90/10 get more

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