Under certain circumstances, such as noncompliance with critical path schedule (CPS) monitoring requirements, the loss of a queue position, or the failure to provide financial assurance, the ISO may terminate a resource’s capacity supply obligation (CSO) for all or a portion of its noncommercial capacity. Resources are eligible for termination based on the provisions of Market Rule 1, Section III.13.3.4A, Termination of Capacity Supply Obligations. Termination is only triggered after consultation with the project sponsor.
If a project sponsor wishes to participate in the Forward Capacity Market (FCM) with a terminated resource again, it will need to resubmit a show-of-interest (SOI) form and go through the qualification process as a new resource.
After the CSO for a project has been terminated, the terminated portion is reflected in the Forward Capacity Tracking System (FCTS) under the Monitored CPS tab.
A resource that has had its CSO terminated—either by voluntary withdrawal from CPS monitoring or ISO termination—must forfeit any financial assurance associated with the terminated megawatts and lose its associated CSO and its right to any payments associated with that CSO. This resouce’s qualified capacity will be adjusted down for subsequent CCPs to reflect the terminated CSO, and its capacity network resource capability (CNRC)—or its capacity network import capability (CNIC) in the case of import capacity resources associated with an external elective transmission upgrade—will be adjusted accordingly.