MRC Passes Uplift Proposal

The Markets and Reliability Committee at its April 23 meeting endorsed a proposal to revise rules regarding the treatment of combustion turbine lost opportunity cost. The Energy Market Uplift Senior Task Force made the initial proposal.

The Members Committee is scheduled to vote on the proposal at its May 21 meeting.

The endorsed proposal was based on one developed by the task force and it incorporated an amendment to address excluding a startup cost payment when a qualified unit ran for a portion of its day-ahead committed period, which would not make the unit owner “indifferent,” and an amendment to clarify some additional language.

The endorsed proposal also differed from the task force’s in that it eliminated any changes to a unit’s eligibility for lost opportunity cost payments, keeping the status quo for unit types. This applied to units whether they were combustion turbine or combined cycle, operating in a simple cycle. The task force originally proposed that resources, regardless of technology, having a two-hour startup and notification time plus a two-hour minimum run time be eligible to receive lost opportunity cost payments. However some participants preferred that combustion turbines with longer minimum run times also be eligible. Participants accepted returning to the status quo as an appropriate compromise.

In March, the MRC considered several other proposals on combustion turbine lost opportunity cost rules but decided at its monthly meeting on March 26 to delay action until there was additional discussion on the proposal at the task force meetings. The task force met on April 1 and April 17 to discuss the proposals.

In other votes, the MRC:

  • Endorsed manual revisions,
  • Approved the charter for the Tariff Harmonization Sr. Task Force,
  • Approved directing the Planning Committee to develop Manual revisions related to treatment of generation interconnection projects included in multi-driver approach proposals and to put the Regional Planning Process Senior Task Force on hiatus until there are any FERC rulings related to Order 1000,
  • Approved a proposed problem statement and issue charge proposed by Calpine regarding the need for more flexible market offers for physical generating resources. There will be an educational session after the May MIC and MRC meetings to begin the education process on the issue.