Under certain circumstances, such as noncompliance with the requirements to monitor the critical-path schedule (CPS), 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 full new 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 by ISO termination—must forfeit any financial assurance associated with the terminated megawatts. Terminated resources also lose their associated CSO and rights to any payments associated with that CSO. These resources’ qualified capacity will be adjusted down for subsequent CCPs to reflect the terminated CSO, and their capacity network resource capability (CNRC)—or their capacity network import capability (CNIC) in the case of import capacity resources associated with an external elective transmission upgrade—will be adjusted accordingly.