Net Commitment Payment compensation is a "make-whole" payment made to resources whose hourly commitment and dispatch by ISO-NE resulted in a shortfall between the resource's offered value in the Energy and Regulation Markets and the revenue earned from output over the course of the day. Typically, this is the result of some out-of-merit operation of resources occurring in order to protect the overall resource adequacy and transmission security of specific locations or of the entire control area.
1. Voltage NCPC Payments (VAR)- Reliability costs paid to resources operated by the ISO-NE to provide voltage control in specific locations
2. Distribution NCPC Payments (SCR- Special Constraint Resource) - Reliability costs paid to units dispatched at the request of local transmission providers for purpose of managing Constraints on the low voltage (distribution) system. (Real Time Market only)
3. 2nd Contingency NCPC Payments ("LSCPR", formerly "RMR") - Reliability costs paid to resources providing adequate capacity in constrained areas to respond to a local second contingency. They are committed based on 2nd Contingency protocols
4. 1ST Contingency NCPC Payments ("Economic") - Reliability costs paid to eligible resources that are not providing 2nd Contingency, Voltage, or Distribution requirements. These resources may have been providing first contingency coverage (system-wide or locally)
1. Voltage NCPC Payments (VAR) - Allocated in Day Ahead Market and in Real Time Market to Network Load and OASIS Reservation
2. Distribution NCPC Payments - Allocated in Real Time Market to the Transmission or Distribution Owners
3. 2nd Contingency NCPC Payments - Allocated in Day - Ahead Market to Regional Day-Ahead Load and in Real Time Market to the Regional Real-Tome Load Obligation
4. 1ST Contingency NCPC Payments ("Economic") - Allocated in the Day- Ahead Market to Day-Ahead Load Obligation (DALO) and in the Real Time Market to Real Time Deviations
1. Calculate RT NCPC Economic Charges:
Participants total deviations/ Pool total deviations X Real Time Economic NCPC Credit
2. Calculate RT NCPC LSCPR Charge:
Participants Daily Reliability Region Real Time Load Obligation/ Pool Daily Reliability Region Real Time Obligation X LSCPR NCPC Credit
3. Calculate RT NCPC VAR Charge:
Participant Network Load+ Hourly OASIS Reservation/ Pool Network Load + Hourly OASIS Reservations X Hourly VAR NCPC Credit
The Start-up Cost and the No-Load Cost are part of the daily Day Ahead offer and are included in the NCPC calculation.
Under the scenario (early start) you would not incur deviation related NCPC Charges and would be paid the Real-Time LMP for the additional time on. Pool scheduled resources do not receive deviations so would not incur NCPC charges. The only time a pool scheduled resource receives a deviation is when it is flagged Failure-to-Follow for an hour.
Under the scenario (delayed start) you would not be hit with deviation related NCPC charges as you were following dispatch instructions (Pool scheduled resource). You would be short on the Real-Time Market settlement and would buy them back at the RT price. In most cases this would occur if demand didn't show up in RT and you weren't dispatched in accordance with your DA schedule, and because of that, LMPs would be less so buying back at RT would be cheaper than what you were paid for the MWs in Day-Ahead, and you benefit. In cases where there were operational/reliability issues that prevented the schedule, and the LMP was higher, while you don't take the NCPC hit, you do buy back at the higher RT price. I found no provisions in the market rules to mitigate this end result.
No, awarded DA NCPC payments would not be affected by Real Time Transactions; however, if the unit deviates from its Day-Ahead commitment it would be subjected to Real Time Economic NCPC Charges.
No, units with RMR agreements are NOT automatically designated as Daily RMR units.
Yes, if the unit is an ICAP Resource they have to offer into the DA and RT markets. They can offer into the market based on economics (marginal cost) and they can self schedule the unit.
Yes, Units are compensated like any other unit in the DA and RT markets. IMPORTANT NOTE: Units with an RMR agreement cannot exceed there agreed upon contract. For example, if your RMR agreement say's you are to be paid $5Million and you make an extra $1Million in the Day Ahead or Real Time market; $1Million will be backed out of your monthly RMR.
The RMR units that fail to supply the number of MW they offer into the DA Market will be charged through NCPC (Net Commitment Period Compensation) for their deviations.
Daily RMR units: normally are designated in RAA and affect RT operations only. Relieve second contingency constraints at the lowest cost. ISO New England designates the least cost expensive unit to provide the daily RMR. Note: A unit can be flagged for daily RMR less then an hour at a time depending on the "reliability needs".
The purpose of Daily RMR is to ensure reliability. We try to pick the least cost expensive unit to provide the daily RMR. Note: A unit can be flagged for daily RMR for less then an hour at a time depending on the "reliability needs".
No, Daily RMR can be in multiple regions for multiple units.