JUNE 20, 2013 – WESTBOROUGH, MA

Marc LyonsLEAD ANALYST – RELIABILITY & OPERATIONS SERVICES

ISO-NE Compliance

FERC Orders 764 & 764-A Integration ofVariable Energy Resources

Overview

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Summary of FERC Orders 764 & 764-A• Order No. 764 sets out proposed reforms to the pro forma

open access transmission tariffs (OATT) related to the integration of Variable Energy Resources (VER).

• Order 764 requires each public utility transmission provider to revise their OATT to: o Offer intra-hourly transmission scheduling at 15-minute intervals ;

ando Incorporate provisions into the pro forma Large Generator

Interconnection Agreement (LGIA) requiring interconnection customers whose generating facilities are VERs to provide meteorological and forced outage data to the public utility transmission provider for the purpose of power production forecasting. Add definition of VER. Add new Article 8.4.

• Order No. 764-A affirms these requirements.

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ISO-NE’s Proposed Compliance – Intra-hourly Scheduling

• The ISO does not propose to revise the ISO-NE OATT to incorporate intra-hourly transmission scheduling at 15-minute intervals.o The ISO-NE OATT does not offer pro forma transmission service over the Pool

Transmission Facilities; it does not employ the system of physical rights or advanced reservations contemplated in the FERC pro forma OATT.

o The ISO-NE OATT’s regional transmission service works in conjunction with the New England market design, which uses a security-constrained economic commitment and dispatch system that sends dispatch signals to generating resources on five-minute intervals.

• The driver for offering transmission customers an option to schedule transmission on a 15-minute interval basis is primarily to reduce VER exposure to imbalance charges under the pro forma OATT.o ISO-NE OATT does not impose imbalance charges.o Internal resources are subject to risks associated with deviations between Day-Ahead

Energy Market and Real-Time Energy Market, but Intermittent Resources are not subject to Real-Time NCPC charges.

o External transactions are unbundled from the source resource under the New England market rules, which eliminates any exposure to deviations.

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ISO-NE’s Proposed Compliance – Incorporate Provisions in the pro forma LGIA

• The ISO proposes to revise the pro forma LGIA to:o Add new Article 8.4 setting forth the reporting requirement regarding

meteorological and forced outage data, but: Instead of cross-referencing Appendix C, Interconnection Details of the LGIA, Article

8.4 will cross-reference existing ISO-NE Operating Documents on meteorological and forced outage data requirements;

Use the term of Intermittent Power Resources (IPR) that already exists in the ISO-NE Tariff instead of incorporating the term of VER; and

Replace the term “Transmission Provider” with “System Operator”, which is the term used in the LGIA for ISO-NE.

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Provisions in the pro forma LGIA (cont’d)

• Existing ISO-NE Operating Documents are consistent with Order 764 data collection requirements. For example:

o Operating Procedure 14, Appendix F - ISO-NE currently collects certain the meteorological data - temperature, wind speed, wind direction, atmospheric pressure, and additional data as needed.

o ISO-NE currently collects forced outage data by MW and number of turbines.

o Collection is in real time (5 minute increments) and forecasted (hourly intra-day and daily for week ahead) for units represented in the ISO Energy Management System.

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Provisions in the pro forma LGIA (cont’d)

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Schedule for Stakeholder Review

• June 20, 2013 TC Meeting - ISO-NE’s initial presentation of revisions to Schedule 22 LGIA to comply with FERC Order 764

• July 22/23, 2013 Joint MC/RC Summer Meeting - TC Action

• July 24, 2013 - PTOAC Discussion

• FERC Filing no later than November 12, 2013

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