FERC Accepts ISO-NE Proposal To Change Definition Of Shortage Event
November 05, 2013
The Federal Energy Regulatory Commission accepted ISO-New England’s proposal to change what constitutes a shortage event under the grid operator’s capacity market rules. The definition is being expanded to include any deficiency of 30-minute operating reserves for 30 or more minutes. The proposals also included changes to the shortage event trigger specific to import-constrained capacity zones. Shortage events are periods when reserves are short of the target; during them, the ISO measures the performance of resources with capacity supply obligations. If a capacity resource is partially or fully unavailable, it gets penalized against its capacity payment. ISO-NE has in practice defined a shortage event as when the reserve constraint penalty factor for 10-minute non-spinning reserves is activated for at least 30 minutes. The current definition of a scarcity event is too restrictive, said the ISO, and that has cut back on incentives for resources to perform when needed. The change will go into effect this month.