No. Market Trials will not be conducted for the FCM Transition Period.

• Starting with the data submittal for October 2006, GADS submittals should include Reserve Shutdown event data in the Event Report file. GADS data submittals will not be rejected initially if Reserve Shutdown events are not included, but updated submittals that include the event data for October through December 2006 will be due when the December 2006 data is submitted in January 2007. Data submittals for January 2007 and all subsequent months must include Reserve Shutdown events on initial submittal. (Intermittent resources and pumped storage and hydro units that do not have automated recording equipment are not required to provide Reserve Shutdown events.)
• Settlement Only Generators (< 5 MWs) continue to have the option to elect either full GADS Reporting or the use of the NERC Class Average EFORd. The election that is in place as of December 1, 2006 will remain in effect through the Transition Period.

Yes. ICAP Resources (other than Dispatchable Asset Related Demand Resources) may continue to fully or partially de-list during the Transition Period. However, an ICAP Resource can only de-list (or re-list) effective the start of each ICAP Commitment Period and must remain de-listed (or listed) for the entire duration of the relevant ICAP Commitment Period. The summer ICAP Commitment Period includes the months of May through October, and the winter ICAP Commitment Period includes the months of November through April. Since the start of the Transition Period does not align with the start of an ICAP Commitment Period, ICAP Resources will be allowed to de-list (or re-list) effective December 1, 2006.

The final ICAP Supply and Deficiency Auctions will be held in October 2006 for the November 2006 ICAP obligation month.

ICAP Payments during the Transition Period will be billed and credited in the month subsequent to the Obligation Month. The FCM Transition Period begins December 1, 2006. The first Transition Period settlement (for the December 2006 Obligation Month) will be included in the non-hourly services bill issued January 11, 2007. All Transition settlements (payments and charges) will be subject to a 90-day resettlement process.

Each ICAP Resource (other than Dispatchable Asset Related Demand Resources) will receive an ICAP Payment for each month that it is listed that will be calculated as the product of the resource's UCAP rating and the following fixed payment rate (ICAP Transition Rate):

No. Dispatchable Asset Related Demand Resources will not receive an ICAP Payment, but rather each Dispatchable Asset Related Demand Resource will receive an adjustment to its share of ICAP Payment costs that is based on its ability to reduce consumption.

Yes. An External Transaction (ICAP Import) is eligible to receive ICAP Payments. ICAP Import Contracts must be at least two consecutive months in duration, with both months within the same ICAP Commitment Period.

Where availability is measured using weighted EFORd, it will be determined based on the following hourly weightings:

Definitions

On-Peak - Hours ending 8:00AM through 11:00PM on all non-NERC holiday weekdays.

Off-Peak - All hours that are not On-Peak hours.

Seasonal Peak - The 200 hours pertaining to the highest 100 hourly system loads during the summer period (June through September) and the highest 100 hourly system loads during the winter period (October through May).

Shortage Hour - Periods of system-wide OP 4, Action 6 or 11, or OP 7 implementation.

The deadline for submission of bilateral UCAP transactions is as follows:

• Preliminary settlement internal ICAP IBT deadline: by 12:00 p.m. of the 2nd business day of the month following the Obligation Month.
• 90-Day resettlement internal ICAP IBT deadline: by 5:00 p.m. of the 90th day following the date of the initial Customer Bill containing the last Operating Day being billed for the preceding month (same as RT Energy IBT deadline).
• Preliminary settlement external ICAP EBT deadline: by midnight of the calendar day prior to the first calendar day of the Obligation Month.
• 90-Day resettlement external ICAP EBT deadline: the submission window for external ICAP EBTs will not be reopened for the 90-day resettlement.

The current ICAP Deficiency Rate of $6.66/kW-month used as the penalty rate for failing to schedule and deliver an ICAP Import Contract will be replaced by "twice the ICAP Transition Rate" effective for the Obligation Month.

Other Demand Resources include Energy Efficiency, Load Management, and Distributed Generation projects. ODRs installed after June 16, 2006 will be eligible for FCM Transition Period payments based on the Transition period payment schedule beginning December 1, 2006.

The minimum value of ODRs eligible for FCM Transition Period payments is 100 kW.

Participants must register their resource with ISO-NE and submit an ODR Measurement and Verification Plan that must be reviewed and approved by ISO-NE prior to receiving ICAP Payments during the transition period.