What is the Reserve Market?
The Reserve Market consists of two distinct products for the provision of reserve capacity in New England. This capacity is available for dispatch during system contingencies, which are unplanned disconnections of power system elements, such as transmission facilities or generators, from the electricity grid. The Forward Reserve Market (FRM) is the procurement mechanism for delivery of reserve products to meet 10-minute non-synchronous reserve (TMNSR) and 30-minute operating reserve (TMOR) requirements in New England during on-peak hours. Market Participants submit offers for FRM obligations in specific Reserve Zones to the Forward Reserve Market Auction, which occurs twice annually prior to each Seasonal Capability Period. (The Summer season period is June - September; the winter period is October - May). Payments for Forward Reserve delivery are made to Market Participants with FRM obligations based on the value of the Forward Reserve Clearing price for the appropriate Reserve Zone and product. In order for Participants to meet their obligations in the market, eligible forward reserve resources must be assigned in advance of the operating day to provide reserves on an hourly basis. Real-Time Reserve capability on eligible assets is designated by the ISO during the operating day, and resources that provide these reserves will be paid based on the value of the hourly Real-Time Reserve Clearing Price for the appropriate Reserve Zone and product.
In what document(s) do I find details about the Reserve Market?
Primary provisions for the settlement of the Reserve Market are included in, but not limited to, Market Rule 1 , ISO New England Manual for Market Rule 1 Accounting Manual M-28 and ISO New England Manual for Forward Reserve M-36.
Who can expect to incur a Reserve Market Credit or Charge?
The Market Participant with an obligation in the Forward Reserve Market will receive credits for service delivered, by zone and product, based on the Forward Reserve Clearing Prices determined in the Auction. Obligations in the Forward Reserve Market are obtained through clearing in the Auction; adjusted, as applicable, for bilateral trading of obligations. The Market Participant with ownership in a resource that provides Real-Time Reserves will receive credits for service during hours that the Reserve Market Clearing Price is not zero; however, payments are adjusted in order to prevent an asset for being compensated in both the Real-Time Reserve Market and the Forward Reserve Market at the same time. The hourly Real-Time Reserve Clearing Prices are determined in accordance with Market Rule 1.
The Market Participant with an obligation in the Forward Reserve Market who fails to provide the service is subject to penalties. The total credits and penalty charges associated with the Forward Reserve Market and the total credits associated with the Real-Time Reserve Market are allocated as charges to Market Participants based on Real-Time Load Obligations in applicable Load Zones.
Related Standard Settlements
Related Billing Adjustments
The hourly services bill contains a single line item entitled "Reserve Market". This line item is the net of charges and credits for both the Forward Reserve Market and the Real-Time Reserve Market.
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.
Reserve Asset Detail Report
SD_RSVASTDTL Hourly detail of Participant's reserve information by asset, issued upon settlement of Market Day.
Forward Reserve Transaction Activity Report
SD_RSVTRANSACT Hourly detail of Participant's Forward Reserve Bilateral Transactions, issued upon settlement of Market Day.
Reserve Market Customer Charges Report
SR_RSVCHARGE Summary of Pool Charges and Participant's Charges by hour, issued upon settlement of Market Day.
Reserve Market Settlement Report
SR_RSVSTL Summary of Pool Credits by hour and Participant's Credits and Charges by hour, issued upon settlement of Market Day.
Reserve Market Zonal Summary Report
SR_RSVZONESUM Summary of Participant's Reserve Market Credits and Charges by Zone, product and hour, issued upon settlement of Market Day.
Related Calculation Summary
Reserve Market 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 items prefaced with the titles Forward Reserve Market and Real Time Reserve Market.