OATT- Schedule 2 VAR

What is OATT-Schedule 2 VAR?

Volt Ampere Reactive (VAR) is a measurement of reactive power used to maintain transmission voltages to meet the operating requirements for the New England Transmission System. Resources are compensated for providing VAR service.

In what document(s) do I find details about OATT-Schedule 2 VAR?

Primary provisions for the settlement of VAR are located in Schedule 2 of the ISO New England Open Access Transmission Tariff (OATT). Other sections of the OATT and other documents, including, but not limited to, ISO New England Operating Procedure No. 12 (Voltage and Reactive Control) and Schedule 2 VAR Business Procedure, are also applicable.

Who can expect to incur a VAR Credit or Charge?

Credits

Qualified Reactive Resources

Fixed Payment

OATT Schedule 2 VAR Capacity Cost (CC) payments are distributed based upon an asset's Qualified Leading and Lagging VARs and the applicable VAR CC Rate, for the capability to provide VAR Service. The Federal Energy Regulatory Commission (FERC) approved VAR CC Rate ($/MVAR-year) calculation is available in the ISO New England OATT. The calculated VAR CC Rate ($/MVAR-year) is available in the Annual Capacity Cost Rate Report WW_VARCCRATE_ISO.

Variable Payments

Lost Opportunity Cost (LOC) - Payment for generators that are dispatched down by, or at the request of, the ISO, or a Local Control Center for the purpose of providing VAR Service. Cost of Energy Consumed (CEC) - Payment associated with hydro and pumped storage generating units that are motoring at the request of the ISO or a Local Control Center for the purpose of providing VAR Service. Cost of Energy Produced (CEP) - Payment that compensates a hydro, pumped storage or thermal generating unit if the ISO or a Local Control Center brings the unit on line (and the unit produces real power) for the purpose of providing VAR Service. For a detailed account, refer to the Day Ahead Net Commitment Period Compensation (NCPC) Reports section or Real Time NCPC Reports section.

Charges

Network Load and Reservations

The hourly charge for VAR Service, excluding High Voltage VAR, is allocated pro rata to each transmission customer that receives either Regional Network Service (RNS) or Through or Out Service (TOUT).

Related Standard Settlements

High Voltage VAR Cost Reallocation - Charges and credits associated with this Standard Settlement are summarized in the monthly MIS Report issued on an event basis one month in arrears of the settlement obligation month, and are included in the bill line item "OATT-Schedule 2 VAR".

Related Billing Adjustments

N/A

Bill Detail

The monthly bill contains a single line item netting charges and credits entitled "OATT-Schedule 2 VAR".

Reports

Daily Financial Position Report

BL_DAILYPOSITION Daily financial position including all market service settlements and miscellaneous billing adjustments generated on a daily basis; and, issued to all active customers registered as a Participant or Non-Participant.

OATT Schedule 2: VAR Capacity Cost Charge Details Report

SD_VARCCCHG Summarized in the monthly MIS Report issued during the beginning of the applicable settlement obligation month.

OATT Schedule 2: VAR Capacity Cost Payment Report: VAR CC Payment

SD_VARCCPMT Summarized in the monthly MIS Report issued one month in arrears of the settlement obligation month.

OATT Schedule 2: VAR Cost of Energy Consumed Payment Report: VAR CEC Payment

SD_VARCECPMT Summarized in the monthly MIS Report also issued one month in arrears of the settlement obligation month.

OATT Schedule 2: VAR Cost of Energy Produced Payment Report: VAR CEP Payment

SD_VARCEPPMT Summarized in the monthly MIS Report also issued one month in arrears of the settlement obligation month.

OATT Schedule 2: VAR Lost Opportunity Cost Payment Report: VAR LOC Payment

SD_VARLOCPMT Summarized in the monthly MIS Report also issued one month in arrears of the settlement obligation month.

OATT Schedule 2: OATT Schedule 2: VAR Variable Cost Charge Details Report

SD_VARVCCHG Summarized in the monthly MIS Report also issued one month in arrears of the settlement obligation month.

OATT Schedule 2: VAR Settlement Summary Report

SR_VARSTL Summarized in the monthly MIS Report also issued one month in arrears of the settlement obligation month. This report includes the settlement of the credits and charges for NCPC associated with Resources that were committed for VAR service, as well as the settlement of all other VAR related costs.  See Real-Time NCPC and Day-Ahead NCPC

OATT Schedule 2: VAR Annual Capacity Cost Rate Report

WW_VARCCRATE_ISO Report includes the annual VAR CC rate and the variables used in the VAR CC Rate calculation.

OATT Schedule 2: VAR Status Summary Report

WW_VARSTATUS_ISO Report provides monthly information on reactive resources that participate in the VAR program.

FERC EQR

VAR is reported on the SP_EQR report, available on a monthly basis one month after the given settlement, as referenced in the FERC EQR mapping line item OATT Schedule 2: CC Payment. Variable payments for LOC are reported on the SP_EQR report, available on a monthly basis one month after the given settlement, as referenced in the FERC EQR mapping line item OATT Schedule 2: LOC Payment. Variable payments for CEP associated with NCPC are reported on the SP_EQR report, available on a monthly basis one month after the given settlement, as referenced in the FERC EQR mapping line items NCPC - Day Ahead or NCPC - Real Time. Variable payments for CEP are reported on the SP_EQR report, available on a monthly basis one month after the given settlement, as referenced in the FERC EQR mapping line item OATT Schedule 2: Cost of Energy Produced. Variable payments for CEC are reported on the SP_EQR report, available on a monthly basis one month after the given settlement, as referenced in the FERC EQR mapping line item OATT Schedule 2: Cost of Energy Consumed.

Additional Related Materials


VAR Settlement/Administration Change for Q1 2008

ISO News Issue 191 - ISO New England to Release New Daily Financial Position Report

Regional Network Load Cost

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