CALIFORNIA ISO MARKET NOTICE

Requested Client Action:  Information Only

 

Date of Distribution:  January 12, 2007

 

Categories:  Legal/ Regulatory, Market Rules and Market Design

 

Subject:  Amendment 72 – Posting of Recommended Modifications

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Summary:  Following a stakeholder process to identify and evaluate potential refinements to Tariff Amendment 72, the CAISO has finalized its recommendation, which will be presented for approval to the CAISO Board of Governors on January 25, 2007.  The final recommendations are summarized in a white paper posted to the CAISO website.

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Main Text:  The California ISO (CAISO) has completed a stakeholder process to identify and consider potential refinements to Amendment 72.  After consideration of all the feedback received, both from stakeholders and CAISO staff, the CAISO has finalized its recommendation.  This recommendation is posted on the CAISO website at: http://www.caiso.com/18c9/18c9b8e3224d0.html.

 

The CAISO will seek Board of Governors’ approval of this recommendation at the January 25, 2007 Board meeting.

 

Background

In October 2005, the California ISO (CAISO) filed Tariff Amendment 72, which required Scheduling Coordinators (SCs) to submit day-ahead schedules equal to at least 95% of their forecast demand for each hour of the next day.  The 95% day-ahead scheduling requirement was designed to enhance reliability and reduce the need for the CAISO to take actions to protect against underscheduling, such as requiring additional capacity to be on-line through Must-Offer Waiver denials.

 

Overall compliance with the 95% day-ahead scheduling requirement has been extremely high since spring 2006, particularly during peak hours.  However, some participants and CAISO operations staff have expressed concerns about the impacts and difficulty of complying with the 95% scheduling requirement, particularly during off-peak and weekend hours.  In response to these concerns, the CAISO initiated a stakeholder process to identify and consider potential refinements to Amendment 72.

 

Activities

On December 12, 2006, the CAISO posted a white paper outlining issues with Amendment 72 and a draft straw proposal for changes to Amendment 72.  Comments to the white paper were posted December 20, 2006.  Following review of the comments and feedback during the December 20, 2006 stakeholder conference call, an addendum to the white paper was posted outlining specific options for modifications to Amendment 72.  The Addendum was posted on December 22, 2006 and comments to the Addendum were posted January 8, 2007.

 

All of these documents can be viewed on the CAISO website at:  http://www.caiso.com/18c9/18c9b8e3224d0.html.

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For More Information Contact:  Gillian Biedler at 916-608-7203

 

 

 

The California ISO strives to be a world-class electric transmission organization built around a globally recognized and inspired team providing cost-effective and reliable service, well-balanced energy market mechanisms, and high-quality information for the benefit of our customers.


 

EA/ComPR/IPS/ds