Last update: 09/24/2024
Below, affected ISO New England (ISO-NE) participants can learn more about changes to existing systems and procedures related to the Day-Ahead Ancillary Services Initiative (DASI). This project is one of several that ISO-NE has undertaken, in collaboration with stakeholders, for the continued development of the region’s wholesale electricity markets.
See the Participant Readiness Project Outlook for a summary of specifically affected participants and systems for this and other major projects. To receive outlook and project page announcements and training notices, please subscribe to the Participant Readiness and ISO Training mailing lists, which can be managed in Ask ISO. Refer to the How to Manage Your Mailing Lists article for instructions.
ISO New England will introduce ancillary services and constraints in the Day-Ahead Market (DAM) for operating date March 1, 2025, to develop a day-ahead operating plan that satisfies both the load forecast and contingency reserve requirements. Participants with generators, demand response resources (DRRs), or dispatchable asset-related demand (DARDs) that want to provide ancillary services will be required to bid into the DAM to offer these services.
With the introduction of the day-ahead ancillary services, the Forward Reserve Market (FRM) will be retired. The last FRM period is October 1, 2024 to February 28, 2025. The last valid contract date for FRM contracts is February 28, 2025. The Internal Transactions user interface and upload process will return an error message if a contract date exceeds the FRM sunset.
Currently, the methods used to meet reliability requirements are out-of-market actions, which introduce a number of issues. These include:
Two new ancillary services categories with distinct purposes will be offered in the DAM to address these concerns.
A new constraint will be introduced and existing constraints will be enforced in the day-ahead security-constrained unit commitment (DASCUC) and day-ahead security-constrained economic dispatch (DASCED) processes.
A new Forecast Energy Requirement Price (FERP) is the clearing price for the FER (analogous to how the LMP is the clearing price for the energy balance constraint). A MWh of cleared day-ahead energy from a physical supply resource will be paid the locational marginal price (LMP) + FERP, because that MWh contributes to both the energy balance and FER constraints. A MWh of cleared EIR, in contrast, is paid only the FERP, because it contributes to the FER, but not to the energy balance constraint.
Participants with generators, DRRs, or DARDs that will provide FRS or EIR must submit ancillary services offers for their resources with the maximum MWh values they are willing to provide and the minimum price they must receive to clear in the DAM. The price and quantity pairs are submitted for a specific hour, or range of hours, and can vary by hour.
Participants can also opt to provide a maximum daily award limit (MDAL) to indicate the maximum total energy and ancillary services MWhs a resource can clear over the 24-hour DAM horizon. The MDAL is similar to the maximum daily energy (MDE) offer parameter in that it represents the total energy MWhs available for a resource on an operating day. Participants can provide the MDAL and MDE parameters, one or the other, or neither.
Affected market participants are required to take specific steps or adapt to changes in ISO-NE systems as described below, and should be mindful of additional time-bound items, some of which may require participants to take specific steps or adapt to changes in ISO-NE systems both before and after the project implementation date.
TIMING OR DEADLINE | SYSTEM | ACTION OR EVENT |
---|---|---|
July 2024 |
Internal Transactions |
The forward reserve ten minute non-spinning reserve (TMNSR) and the forward reserve ten minute operating reserve (TMOR) can only be selected for contracts with start and end dates before March 1, 2025. |
October 2024 |
eMarket Sandbox |
Participants can test submitting benchmark limit data, daily total MWh limits, and day-ahead ancillary services offer price and quantity pairs by the hour or for a range of hours. They can view a new eMarket display for hourly strike prices and expected closeouts. eMarket data exchange specifications can also be tested. |
Q1 2025 |
iso-ne.com |
Participants begin to review the Day Ahead Ancillary Services Strike Price report and the Day-Ahead Hourly Reserve Requirements, Prices, Designations, and Forecast report to be posted to the ISO New England website after the DAM close. Location will be communicated when determined. |
February 2025 |
eMarket Production |
Participants submit benchmark limit data, daily total MWh limits and day-ahead ancillary services offer price and quantity pairs by the hour or range of hours for operating day March 1, 2025. They can view hourly strike prices and expected closeouts in a new eMarket display and begin to use their updated eMarket data exchange specifications, if applicable. |
February 2025 |
Financial Assurance Management (FAM) |
Day-ahead ancillary services reserve requirements are included in the financial assurance (FA) calculation. |
February 28, 2025 |
Web Publishing |
The new day-ahead ancillary services values are available. |
February 28, 2025 | Market Information Server (MIS) | New and updated settlement reports to be available. Reports will also be retired. |
After March 2026 |
Forward Reserve Market Auction |
The auction software will remain on the SMD Application Home Page until sometime after March 2026 in the event there is a resettlement. |
After March 2026 |
Forward Reserve Assignment |
The assignment user interface will remain on the SMD Application Home Page until sometime after March 2026 in the event there is a resettlement. |
ISO New England may offer online or classroom-based training, information sessions, and other opportunities for affected customers to learn about changes and ask questions in advance of project implementation.
DATE | EVENT AND SUPPORTING MATERIALS |
---|---|
Beginning August 2024, through Q4 2024 |
Access the Day-Ahead Ancillary Services Playlist to view released training modules. Stakeholders may opt to receive notifications when new content is released by clicking the blue follow button at the top right of the playlist landing page. Planned and released training modules include:
|
Market participants affected by the project should consult the following documents for specific instructions on completing related tasks or processes and helpful answers to frequently asked questions.
DOCUMENT | NOTES (if necessary) |
---|---|
Web Services XML Data and CSV Upload/Download Reports |
DASI updates to strike prices, offer data, binding constraints, and hourly reserve requirements. |
User Guide version V8.0 updated for testing changes under the Day-Ahead Ancillary Services project in sandbox in October 2024. |
|
eMarket Data Exchange Specification v12.0 updated for testing changes under the Day-Ahead Ancillary Services project in sandbox in October 2024. |
|
Market Information Server (MIS) Reporting (DASI) |
New reports:
|
Market Information Server (MIS) Reporting (FRM) |
Reports to be retired:
|
DOCUMENT | NOTES (if necessary) |
---|---|
Section III Market Rule 1 Appendix A (redline) |
Section III.A.3.3 Market Participant Access to its Reference Levels and Day-Ahead Ancillary Services Benchmark Levels |