Appendix K of Section III of the ISO New England Inc. Transmission, Markets, and Services Tariff establishes the Inventoried Energy Program rules. The Inventoried Energy Program is an interim program designed to provide incremental compensation to certain resources that maintain inventoried energy during cold periods (defined as Inventoried Energy Days per Section III.K.3.1) when winter energy security is most stressed. The program will be in place for two winter periods: December 2023 to February 2024 and December 2024 to February 2025.
Additional information related to affected systems, timeframes, supporting articles, training, and program development materials can be found on the Participant Readiness Project Outlook page and the Inventoried Energy Program (IEP) Project page.
A Market Participant participating in the forward component of the Inventoried Energy Program shall receive a base payment for each day of the months of December, January and February for the relevant winter period. A Market Participant’s base payment shall be equal to the Market Participant’s Forward Energy Inventory Election (adjusted as described in Section III.K.1.1) multiplied by the base payment rate and divided by the total number of days in those three months.
The base payment rate will be calculated by the ISO pursuant to Section III.K.2 on August 1 immediately preceding the start of each relevant winter period and posted by August 8.
Participation in the Inventoried Energy Program is voluntary. In order to participate, Market Participants must submit election information to the ISO pursuant to Section III.K.1. The form to submit this information is provided below and must be submitted through Ask ISO.
Forward component election: To participate in the forward component of the program, the information listed in Section III.K.1 must be submitted to the ISO starting September 1 through October 1 immediately preceding the start of the relevant winter period.
Spot-only component election: To participate in the spot-only component of the program, the information listed in Section III.K.1 may be submitted to the ISO starting September 1 through the end of the relevant winter period.
The ISO will report final program participation values to each Market Participant electing to participate in the forward program by the November 1 immediately preceding the start of the relevant winter period, and will post the total forward program elections as soon as practicable thereafter. The ISO will report spot participation by December 1 immediately preceding the start of the relevant winter period. Spot participation may change throughout the winter season and the ISO will update participation values at least monthly.
A Market Participant’s election request for assets to participate in the forward component (and thereby the spot component) or the spot-only component of the Inventoried Energy Program must be accompanied by an affidavit signed by a Senior Officer of the Market Participant attesting that amounts are consistent with asset-specific operational characteristics, terms and conditions associated with submitted contracts, regulatory restrictions, and the requirements of the Inventoried Energy Program.
If a Market Participant’s election request includes any assets of fuel type natural gas, a second affidavit signed by a Senior Officer of the Lead Market Participant must be included with the election request.
Real-Time Energy Inventory
The Lead Market Participant must measure the Real-Time Energy Inventory for each of the assets participating in the inventoried energy program between 7:00 a.m. and 8:00 a.m. on the Operating Day immediately following each Inventoried Energy Day. The Real-Time Energy Inventory must be reported to the ISO in accordance with the provisions of Section III.K.188.8.131.52. Each Real-Time Energy Inventory submission must include an affidavit signed by a Senior Officer of the Lead Market Participant attesting that the reported amount of fuel was available to the Lead Market Participant as required by the provisions of the Inventoried Energy Program.