Volt ampere reactive (VAR) is a measurement of reactive power used to maintain transmission voltages to meet the operating requirements for the New England transmission system. Resources are compensated for providing VAR service.
Note that a resource committed by the ISO for VAR service in the day-ahead or real-time energy market that does not recover its effective offer is eligible for Net Commitment-Period Compensation (NCPC). NCPC VAR payments are calculated and reported in daily day-ahead and real-time settlements but are not included in the twice-weekly billing. Instead, the charge allocation for these payments is reported in the monthly VAR settlement; the credits and charges are billed in the monthly OATT Schedule 2 VAR line item.
Primary provisions for the settlement of VAR are located in Schedule 2 of the ISO New England Open Access Transmission Tariff (OATT). Also applicable are other sections of the OATT and other documents, including, but not limited to, Market Rule 1, Appendix F, Net Commitment Period Compensation Accounting; ISO New England Operating Procedure No. 12, Voltage and Reactive Control; and Schedule 2, VAR Business Procedure.
Market participants with an ownership share in one or more qualified reactive resources. There are two credit components:
The hourly charge for VAR Service, excluding high-voltage VAR, is allocated pro rata to each transmission customer that receives either regional network service (RNS) or through or out service (TOUT). Note: Coordinated external transaction (CET) reservations are excluded from the OATT Schedule 2 VAR charges.
SS_HVVAR: High-Voltage VAR Cost Reallocation–Dispatchable Asset-Related Demand Assets. Charges and credits associated with this standard settlement are issued on an event basis.
The monthly bill contains a single line item netting charges and credits entitled "OATT-Schedule 2 VAR". It is the sum of the credits and charges for VAR capacity costs, VAR variable energy, and on a rare-event basis, the high-voltage VAR cost reallocation.
BL_DAILYPOSITION Daily financial position, including all market service settlements and miscellaneous billing adjustments generated daily.
SR_VARSTL Monthly report includes the settlement of VAR capacity and VAR energy (including NCPC) credits and charges.
Details of the VAR capacity credits and charges can be found in the following reports:
Details of the VAR energy credits can be found in the following reports:
In addition, the following three reports would be issued in rare events:
Details of the VAR energy charges can be found in these reports:
SD_VARVCCHG Monthly report of a participant’s hourly allocation of VAR energy charges
SS_HVVAR Report provides hourly detail of DARD high-voltage VAR cost reallocation.
VAR variable payments associated with NCPC are reported on the SP_EQR report, as referenced in the FERC EQR mapping line items, NCPC—Day Ahead or NCPC—Real Time.
VAR variable payments not reported as NCPC are reported on the SP_EQR report, as referenced in the FERC EQR mapping line items, OATT Schedule 2: Cost of Energy Produced; OATT Schedule 2: LOC Payment; or OATT Schedule 2: Cost of Energy Consumed.