III.13.6. 		Rights and Obligations. 
Resources assuming a Capacity Supply Obligation through a Forward Capacity Auction or resources assuming or shedding a Capacity Supply Obligation through a reconfiguration auction or a Capacity Supply Obligation Bilateral shall comply with this Section III.13.6 for each Capacity Commitment Period.  In the event a resource with a Capacity Supply Obligation assumed through a Forward Capacity Auction, reconfiguration auction, or Capacity Supply Obligation Bilateral can not be allowed to shed its Capacity Supply Obligation due to system reliability considerations, the resource shall maintain the Capacity Supply Obligation until the resource can be released from its Capacity Supply Obligation. No additional compensation shall be provided through the Forward Capacity Market if the resource fails to be released from its Capacity Supply Obligation. 

III.13.6.1. 		Resources with Capacity Supply Obligations. 
A resource with a Capacity Supply Obligation assumed through a Forward Capacity Auction, reconfiguration auction, or a Capacity Supply Obligation Bilateral shall comply with the requirements of this Section III.13.6.1 during the Capacity Commitment Period, or portion thereof, in which the Capacity Supply Obligation applies. 

III.13.6.1.1. 		Generating Capacity Resources with Capacity Supply Obligations. 

III.13.6.1.1.1. 		Energy Market Offer Requirements. 
(a)	A Generating Capacity Resource having a Capacity Supply Obligation shall be offered into both the Day-Ahead Energy Market and Real-Time Energy Market at a MW amount equal to or greater than its Capacity Supply Obligation whenever the resource is physically available. If the resource is physically available at a level less than its Capacity Supply Obligation, however, the resource shall be offered into both the Day-Ahead Energy Market and Real-Time Energy Market at that level.  Day-Ahead Energy Market Supply Offers from such Generating Capacity Resources shall also meet one of the following requirements: 

(i)	 the sum of the Generating Capacity Resource’s Notification Time plus Start-Up Time plus Minimum Run Time plus Minimum Down Time is less than or equal to 72 hours; or 

(ii)	 if the Generating Capacity Resource cannot meet the offer requirements in Section III.13.6.1.1.1(a)(i) due to physical design limits, then the resource shall be offered into the Day-Ahead Energy Market at a MW amount equal to or greater than its Economic Minimum Limit at a price of zero or shall be self-scheduled in the Day-Ahead Energy Market at a MW amount equal to or greater than the resource’s Economic Minimum Limit. 

(b)	Notwithstanding the foregoing, if the Generating Capacity Resource is a Settlement Only Resource, it may not submit Supply Offers into the Day-Ahead Energy Market or Real-Time Energy Market.

III.13.6.1.1.2. 	Requirement that Offers Reflect Accurate Generating Capacity Resource Operating Characteristics. 
For each day, Day-Ahead Energy Market and Real-Time Energy Market offers for the listed portion of a resource must reflect the then-known unit-specific operating characteristics (taking into account, among other things, the physical design characteristics of the unit) consistent with Good Utility Practice.  Resources must re-declare to the ISO any changes to the offer parameters that occur in real time to reflect the known capability of the resource. A resource failing to comply with this requirement shall be subject to potential referral under Section III.A.19. 

III.13.6.1.1.3.  	[Reserved.] 

III.13.6.1.1.4.		 [Reserved.] 

III.13.6.1.1.5. 		Additional Requirements for Generating Capacity Resources. 
Generating Capacity Resources having a Capacity Supply Obligation are subject to the following additional requirements: 

(a) 	auditing and rating requirements as detailed in the ISO New England Manuals and ISO New England Operating Procedures; 

(b) 	Operating Data collection requirements as detailed in the ISO New England Manuals and Market Rule 1 and the requirement to provide to the ISO, upon request and as soon as practicable, confirmation of gas volume schedules sufficient to deliver the energy scheduled for each Generating Capacity Resource using natural gas;  

(c)	 outage requirements in accordance with the ISO New England Manuals and ISO New England Operating Procedures (except that Settlement Only Resources are not subject to outage requirements), provided, however, that the portion of a resource having no Capacity Supply Obligation is not subject to the forced re-scheduling provisions for outages in accordance with the ISO New England Manuals and ISO New England Operating Procedures.   

III.13.6.1.2.  		Import Capacity Resources with Capacity Supply Obligations. 

III.13.6.1.2.1. 		Energy Market Offer Requirements. 
A Market Participant with an Import Capacity Resource must offer one or more External Transactions to import energy in the Day-Ahead Energy Market and Real-Time Energy Market for every hour of each Operating Day at the same external interface that, in total, equal the resource’s Capacity Supply Obligation, except that:

(i)	the offer requirement does not apply to any hour in which any External Resource associated with an Import Capacity Resource is on an outage; 
(ii)	the Day-Ahead Energy Market offer requirement does not apply to any hour in which the import transfer capability of the external interface is 0 MW, and;
(iii)	the Real-Time Energy Market offer requirement does not apply to Import Capacity Resources with Capacity Supply Obligations at an external interface for which Coordinated Transaction Scheduling is implemented.

Each External Transaction submitted in the Day-Ahead Energy Market must reference the associated Import Capacity Resource.

Each External Transaction submitted in the Real-Time Energy Market in accordance with Section III.1.10.7 must reference the associated Import Capacity Resource.

In all cases an Import Capacity Resource is subject to the provisions in Section III.13.7 for the entire Capacity Supply Obligation of the Import Capacity Resource.

III.13.6.1.2.2. 		Additional Requirements for Import Capacity Resources. 
A Market Participant with an Import Capacity Resource that is associated with an External Resource must:

(i)	comply with all offer, outage scheduling and operating requirements applicable to capacity resources in the External Resource’s native Control Area, and;
(ii)	notify the ISO of all outages impacting the Capacity Supply Obligation of the Import Capacity Resource in accordance with the outage notification requirements in ISO New England Operating Procedure No. 5.

III.13.6.1.3.  		Intermittent Power Resources with Capacity Supply Obligations. 

III.13.6.1.3.1. 		Energy Market Offer Requirements. 
(a)	Market Participants with Intermittent Power Resources that are Dispatchable Resources and have a Capacity Supply Obligation are required to submit offers in the Day-Ahead Energy Market consistent with the Market Participant’s expectation of the output of the resource in Real-Time.  Market Participants with non-dispatchable Intermittent Power Resources with a Capacity Supply Obligation may submit, but are not required to submit, offers into the Day-Ahead Energy Market.  Market Participants are required to submit offers for Intermittent Power Resources with a Capacity Supply Obligation for use in the Real-Time Energy Market consistent with the characteristics of the resource.  Day-Ahead projections of output shall be submitted as detailed in the ISO New England Manuals. For purposes of calculating Real-Time NCPC Charges, Intermittent Power Resources shall have a generation deviation of zero. 

(b)	Notwithstanding the foregoing, an Intermittent Power Resource that is a Settlement Only Resource may not submit Supply Offers into the Day-Ahead Energy Market or Real-Time Energy Market.

III.13.6.1.3.2. 		 [Reserved.] 

III.13.6.1.3.3. 		Additional Requirements for Intermittent Power Resources. 
Intermittent Power Resources are subject to the following additional requirements: 

(a) 	auditing and rating requirements as detailed in the ISO New England Manuals; 

(b) 	Operating Data collection requirements as detailed in the ISO New England Manuals; 

(c) 	complying with outage requirements as outlined in the ISO New England Operating Procedures and ISO New England Manuals (except that Intermittent Power Resources that are Settlement Only Resources need not comply with outage requirements). 

III.13.6.1.4.  	[Reserved.] 

III.13.6.1.5. 		Demand Capacity Resources with Capacity Supply Obligations. 

III.13.6.1.5.1.		Energy Market Offer Requirements.

(a)	A Market Participant with an Active Demand Capacity Resource having a Capacity Supply Obligation shall submit Demand Reduction Offers for its Demand Response Resources into the Day-Ahead Energy Market and Real-Time Energy Market in at least the MW amount described in this Section III.13.6.1.5.1; for purposes of the following comparisons, the portion of Demand Reduction Offers not associated with Net Supply shall be increased by average avoided peak transmission and distribution losses.  The sum of the Demand Reduction Offers must be equal to or greater than the Active Demand Capacity Resource’s Capacity Supply Obligation whenever the Demand Response Resources are physically available.  If the Demand Response Resources are physically available at a level less than the Active Demand Capacity Resource’s Capacity Supply Obligation, the sum of the Demand Reduction Offers will equal that level and shall be offered into both the Day-Ahead Energy Market and Real-Time Energy Market.  Each Demand Reduction Offer from a Demand Response Resource made into the Day-Ahead Energy Market shall also meet the following requirement:

(i)	the sum of the Demand Response Resource Notification Time plus Demand Response Resource Start-Up Time plus Minimum Reduction Time plus Minimum Time Between Reductions is less than or equal to 72 hours.

(b)	Seasonal Peak Demand Resources and On-Peak Demand Resources may not submit Demand Reduction Offers into the Day-Ahead Energy Market or Real-Time Energy Market.

III.13.6.1.5.2.	Requirement that Offers Reflect Accurate Demand Response Resource Operating Characteristics.
For each day, Demand Reduction Offers submitted into the Day-Ahead Energy Market and Real-Time Energy Market for a Demand Response Resource associated with an Active Demand Capacity Resource must reflect the then-known operating characteristics of the resource.  Consistent with Section III.1.10.9(d), Demand Response Resources must re-declare to the ISO any changes to offer parameters that occur in real time to reflect the operating characteristics of the resource.  A resource failing to comply with this requirement shall be subject to potential referral under Section III.A.

III.13.6.1.5.3. 		Additional Requirements for Demand Capacity Resources. 
(a)	A Market Participant may not associate an Asset with a non-commercial Demand Capacity Resource during a Capacity Commitment Period if the Asset can be associated with a commercial Demand Capacity Resource whose capability is less than its Capacity Supply Obligation during that Capacity Commitment Period.  

(b)	An Energy Efficiency measure may be added to an On-Peak Demand Resource or Seasonal Peak Demand Resource (other than one consisting of Load Management or Distributed Generation) until two years after the start of the Capacity Commitment Period for which the resource first received a Capacity Supply Obligation; provided, however, that a resource that qualified for a Forward Capacity Auction associated with a Capacity Commitment Period beginning on or before June 1, 2024 may install Energy Efficiency measures until May 31, 2027. Once an Energy Efficiency measure has been associated with an On-Peak Demand Resource or Seasonal Peak Demand Resource, the measure may not be transferred to a different resource. 

(c)  	For purposes of confirming FCM Commercial Operation as described in Section III.13.3.8, the ISO shall use a summer Seasonal DR Audit value or summer Passive DR Audit value to verify the capacity rating of a Demand Capacity Resource with summer Qualified Capacity.  A winter Seasonal DR Audit value or winter Passive DR Audit value may only be used to verify the winter commercial capacity of a Demand Capacity Resource.  The summer and winter commercial capacity of a Demand Capacity Resource consisting of Energy Efficiency measures may be verified in any month of the year.

(d)	For Active Demand Capacity Resources, a summer Seasonal DR Audit value shall be established for use from April 1 through November 30 and a winter Seasonal DR Audit value shall be established for use from December 1 through March 31. The summer or winter Seasonal DR Audit value of an Active Demand Capacity Resource is equal to the sum of the like-season Seasonal DR Audit values of its constituent Demand Response Resources as determined pursuant to Section III.1.5.1.3.1. The Seasonal DR Audit value of an Active Demand Capacity Resource shall automatically update whenever a new Seasonal DR Audit value is approved for a constituent Demand Response Resource or with changes to the makeup of the constituent Demand Response Resources.

(e)	On-Peak Demand Resources and Seasonal Peak Demand Resources shall in addition: (i) comply with the ISO’s measurement and verification requirements pursuant to Section III.13.1.4.3 and the ISO New England Manuals; and (ii) comply with the auditing and rating requirements as detailed in Sections III.13.6.1.5.4 and III.13.6.1.5.5 and the ISO New England Manuals.  

(f)	Active Demand Capacity Resources shall in addition: (i) comply with the measurement and verification requirements and the Operating Data collection requirements as detailed in the ISO New England Manuals and Market Rule 1, and with  outage requirements in accordance with the ISO New England Manuals and ISO New England Operating Procedures, provided, however, that the portion of a resource having no Capacity Supply Obligation is not subject to the forced re-scheduling provisions for outages in accordance with the ISO New England Manuals and ISO New England Operating Procedures; and (ii) comply with the auditing and rating requirements as detailed in Section III.13.6.1.5.5 and the ISO New England Manuals. 

III.13.6.1.5.4.	On-Peak Demand Resource and Seasonal Peak Demand Resource Auditing Requirements.
(a)	A summer Passive DR Audit value and a winter Passive DR Audit value must be established for each On-Peak Demand Resource and Seasonal Peak Demand Resource in every Capacity Commitment Period during which the On-Peak Demand Resource or Seasonal Peak Demand Resource has an annual or monthly Capacity Supply Obligation.

(b)	Summer Passive DR Audit values shall be determined based on data for one or more months of the summer Passive DR Auditing Period (June through August). Winter Passive DR Audit values shall be determined based on data for one or more months of the winter Passive DR Auditing Period (December through January).

(c)	Passive DR Audit values will be made available to the Market Participant within 20 Business Days following the end of the period for which the audit value is determined by the ISO.

(d)	The audit value of an On-Peak Demand Resource is determined by evaluating the Average Hourly Output or Average Hourly Load Reduction of each Asset associated with the On-Peak Demand Resource during the Demand Resource On-Peak Hours. 

(e)	The audit value of a Seasonal Peak Demand Resource is determined by evaluating the Average Hourly Output or Average Hourly Load Reduction of each Asset associated with the Seasonal Peak Demand Resource during the Demand Resource Seasonal Peak Hours. If there are no Demand Resource Seasonal Peak Hours in a month during the Passive DR Auditing Period, performance during Demand Resource On-Peak Hours in that month may be used.

(f)	Passive DR Audit values shall become effective one calendar day after being made available to the Market Participant and remain valid until the earlier of: (i) the next like-season Passive DR Audit value becomes effective or (ii) the end of the following Capability Demonstration Year.

(g)	For On-Peak Demand Resources consisting of Energy Efficiency measures and Seasonal Peak Demand Resources consisting of Energy Efficiency measures, the ISO will calculate a summer Passive DR Audit value and a winter Passive DR Audit value in each month of the year. For all other On-Peak Demand Resources and Seasonal Peak Demand Resources, a Market Participant may request that a summer or winter Passive DR Audit value be determined based on data for, respectively, a summer or winter month outside of the Passive DR Auditing Periods. (For Demand Capacity Resources, summer months are April through November; all other months are winter months.) Such an audit shall not satisfy the Passive DR Audit requirement.

III.13.6.1.5.5.		Additional Demand Capacity Resource Audits.
The ISO may perform additional audits for a Demand Capacity Resource to establish or verify the capability of the Demand Capacity Resource and its underlying assets and measures.  This additional auditing may consist of two levels.

(a)	Level 1 Audit:  the ISO will establish the audit results by conducting a review of records of the Assets and measures to verify that the reported Assets and measures have been installed and are operational.  The audit shall include, but is not limited to, reviewing project or program databases, invoices, installation reports, work orders, and field inspection reports.  In addition, the audit may involve reviewing any independent inspections or evaluations conducted as part of program implementation and program evaluation.

(b)	Level 2 Audit:  the ISO will establish the audit results by initiating or conducting an on-site field audit to verify the installation and performance of the Assets and measures.  Such an audit may include a random or select sample of facilities and measures.

A level 1 audit is not required to precede a level 2 audit.  If the results of the audit indicate that the demand reduction capability of the Demand Capacity Resource is less than or greater than its most recent like-season Passive DR Audit value or Seasonal DR Audit value, then the Demand Capacity Resource’s audit value shall be adjusted accordingly.  

III.13.6.1.6.  		DNE Dispatchable Generator. 

III.13.6.1.6.1. 		Energy Market Offer Requirements. 
Beginning on June 1, 2019, Market Participants with DNE Dispatchable Generators with a Capacity Supply Obligation must submit offers into the Day-Ahead Energy Market for the full amount of the resource’s expected hourly physical capability as determined by the Market Participant.  Market Participants with DNE Dispatchable Generators having a Capacity Supply Obligation must submit offers for the Real-Time Energy Market consistent with the characteristics of the resource.   For purposes of calculating Real-Time NCPC Charges, DNE Dispatchable Generators shall have a generation deviation of zero.  

III.13.6.1.7.	Distributed Energy Capacity Resources with Capacity Supply Obligations.

III.13.6.1.7.1.	Energy Market Offer Requirements.
(a)	A Market Participant with a Distributed Energy Capacity Resource having a Capacity Supply Obligation shall submit offers for its Distributed Energy Resource Aggregations into the Day- Ahead Energy Market and Real-Time Energy Market in at least the MW amount described in this Section III.13.6.1.7.1; for purposes of the following comparisons, the portion of any Demand Reductions Offers not associated with Net Supply shall be increased by average avoided peak transmission and distribution losses. The sum of the offers must be equal to or greater than the Distributed Energy Capacity Resource’s Capacity Supply Obligation whenever the Distributed Energy Resource Aggregations are physically available.  If the Distributed Energy Resource Aggregations are physically available at a level less than the Distributed Energy Capacity Resource’s Capacity Supply Obligation, the sum of the offers will equal that level and shall be offered into both the Day-Ahead Energy Market and Real-Time Energy Market.  Each offer from a Distributed Energy Resource Aggregation made into the Day- Ahead Energy Market shall also meet the following requirement:

(i)	the sum of the resource’s notification time plus start-up time plus Minimum Run Time (or Minimum Reduction Time) plus Minimum Down Time (or Minimum Time Between Reductions) is less than or equal to 72 hours; or

(b)	Notwithstanding the foregoing, if the Distributed Energy Capacity Resource comprises Settlement Only Distributed Energy Resource Aggregations, it is not obligated to submit Supply Offers into the Day-Ahead Energy Market and may not submit Supply Offers into the Real-Time Energy Market.

III.13.6.1.7.2.	Requirement that Offers Reflect Accurate Distributed Energy Capacity Resource Operating Characteristics.
For each day, Day-Ahead Energy Market and Real-Time Energy Market offers for the listed portion of a resource must reflect the then-known unit-specific operating characteristics (taking into account, among other things, the physical design characteristics of the unit) consistent with Good Utility Practice. Resources must re-declare to the ISO any changes to the offer parameters that occur in real time to reflect the known capability of the resource.

III.13.6.1.7.3.	Additional Requirements for Distributed Energy Capacity Resources. 
Distributed Energy Capacity Resources having a Capacity Supply Obligation are subject to the following additional requirements:

(a)	A Market Participant may not associate an Asset with a non-commercial Distributed Energy Capacity Resource during a Capacity Commitment Period if the Asset can be associated with a commercial Distributed Energy Capacity Resource whose capability is less than its Capacity Supply Obligation during that Capacity Commitment Period.

(b)	Distributed Energy Capacity Resources shall comply with the Operating Data collection requirements as detailed in the ISO New England Manuals and Market Rule 1, and with outage requirements in accordance with the ISO New England Manuals and ISO New England Operating Procedures, provided, however, that the portion of a resource having no Capacity Supply Obligation is not subject to the forced re-scheduling provisions for outages in accordance with the ISO New England Manuals and ISO New England Operating Procedures.

(c)	Distributed Energy Capacity Resources shall comply with the auditing and rating requirements as detailed in this Market Rule 1 and the ISO New England Manuals.

(d)	For Distributed Energy Capacity Resources, the Seasonal DECR Audit Value shall be established pursuant to Section III.1.7.13.

III.13.6.2.		 Resources without a Capacity Supply Obligation. 
A resource that does not have any Capacity Supply Obligation shall comply with the requirements in this Section III.13.6.2, and shall not be subject to the requirements set forth in Section III.13.6.1 during the Capacity Commitment Period, or portion thereof, for which the resource has no Capacity Supply Obligation. 

III.13.6.2.1. 		Generating Capacity Resources without a Capacity Supply Obligation. 

III.13.6.2.1.1. 		Energy Market Offer Requirements. 
A Generating Capacity Resource having no Capacity Supply Obligation is not required to offer into the Day-Ahead Energy Market or Real-Time Energy Market. A Generating Capacity Resource that is a Settlement Only Resource may not offer into the Day-Ahead Energy Market or Real-Time Energy Market.

III.13.6.2.1.1.1. 	Day-Ahead Energy Market Participation. 
A Generating Capacity Resource having no Capacity Supply Obligation may submit an offer into the Day-Ahead Energy Market. If any portion of the offered energy clears in the Day-Ahead Energy Market, the entire Supply Offer, up to the Economic Maximum Limit offered into the Day-Ahead Energy Market, will be subject to all of the rules and requirements applicable to that market for the operating day, including the obligation to follow ISO Dispatch Instructions. Such a resource that clears shall be eligible for dispatch in the Real-Time Energy Market.   

III.13.6.2.1.1.2. 	Real-Time Energy Market Participation. 
 A Generating Capacity Resource having no Capacity Supply Obligation may submit an offer into the Real-Time Energy Market. If any portion of the offered energy clears in the Real-Time Energy Market, the entire Supply Offer, up to the Economic Maximum Limit offered into the Real-Time Energy Market, will be subject to all of the rules and requirements applicable to that market for the Operating Day, including the obligation to follow ISO Dispatch Instructions. Such a resource shall be eligible for dispatch in the Real-Time Energy Market.   

III.13.6.2.1.2. 	Additional Requirements for Generating Capacity Resources Having No Capacity Supply Obligation. 
Generating Capacity Resources having no Capacity Supply Obligation are subject to the following additional requirements: 

(a) 	complying with the auditing and rating requirements as detailed in the ISO New England Manuals; 

(b)	 complying with the Operating Data collection requirements detailed in the ISO New England Manuals; and 

(c) 	complying with outage requirements as outlined in the ISO New England Operating Procedures and ISO New England Manuals. Generating Capacity Resources having no Capacity Supply Obligation are not subject to the forced re-scheduling provisions for outages in accordance with the ISO New England Manuals and ISO New England Operating Procedures. 

III.13.6.2.2.	Distributed Energy Capacity Resources without a Capacity Supply Obligation.

III.13.6.2.2.1.	Energy Market Offer Requirements.
A Market Participant with a Distributed Energy Resource Aggregation that is not associated with a Distributed Energy Capacity Resource with a Capacity Supply Obligation is not required to submit offers for the resource into the Day-Ahead Energy Market or Real-Time Energy Market.  A Market Participant with a Settlement Only Distributed Energy Resource Aggregation is not permitted to submit an offer for that resource into the Real-Time Energy Market.

III.13.6.2.2.2.	Day-Ahead Energy Market Participation.
A Market Participant with a Distributed Energy Resource Aggregation that is not associated with a Distributed Energy Capacity Resource with a Capacity Supply Obligation may submit an offer into the Day- Ahead Energy Market. If any portion of the offer clears in the Day-Ahead Energy Market, the entire offer, up to the maximum capability offered into the Day-Ahead Energy Market, will be subject to all of the rules and requirements applicable to that market for the Operating Day, including the obligation to follow Dispatch Instructions.  Such a resource that clears shall be eligible for dispatch in the Real-Time Energy Market so long as it is not a Settlement Only Distributed Energy Resource Aggregation.

III.13.6.2.2.3.	Real-Time Energy Market Participation.
A Market Participant with a Distributed Energy Resource Aggregation that is not associated with a Distributed Energy Capacity Resource with a Capacity Supply Obligation, that did not submit an offer into the Day-Ahead Energy Market or was offered into the Day-Ahead Energy Market and did not clear, may submit an offer in the Real-Time Energy Market so long as the resource is not a Settlement Only Distributed Energy Resource Aggregation, and shall be subject to all of the requirements associated therewith. Such a resource shall be eligible for dispatch in the Real-Time Energy Market.

III.13.6.2.2.4.	Additional Requirements for Distributed Energy Capacity Resources Having No Capacity Supply Obligation.
Distributed Energy Capacity Resources without a Capacity Supply Obligation shall comply with the requirements in Section III.13.6.1.7.3.

III.13.6.2.3. 		Intermittent Power Resources without a Capacity Supply Obligation. 

III.13.6.2.3.1. 		Energy Market Offer Requirements. 
An Intermittent Power Resource having no Capacity Supply Obligation is not required to offer into the Day-Ahead Energy Market or Real-Time Energy Market. An Intermittent Power Resource that is a Settlement Only Resource may not offer into the Day-Ahead Energy Market or Real-Time Energy Market.

III.13.6.2.3.2. 		Additional Requirements for Intermittent Power Resources. 
Intermittent Power Resources are subject to the following additional requirements: 

(a)	 auditing and rating requirements as detailed in the ISO New England Manuals; and 

(b)	 Operating Data collection requirements as detailed in the ISO New England Manuals. 

III.13.6.2.4.  	[Reserved.] 

III.13.6.2.5. 		Demand Capacity Resources without a Capacity Supply Obligation. 

III.13.6.2.5.1.		Energy Market Offer Requirements.
A Market Participant with a Demand Response Resource associated with an Active Demand Capacity Resource without a Capacity Supply Obligation is not required to offer Demand Reduction Offers for the Demand Response Resource into the Day-Ahead Energy Market or Real-Time Energy Market.

Seasonal Peak Demand Resources and On-Peak Demand Resources may not submit Demand Reduction Offers into the Day-Ahead Energy Market or Real-Time Energy Market.

III.13.6.2.5.1.1.		Day-Ahead Energy Market Participation.
A Market Participant with a Demand Response Resource associated with an Active Demand Capacity Resource without a Capacity Supply Obligation may submit a Demand Reduction Offer into the Day-Ahead Energy Market. If any portion of the Demand Reduction Offer clears in the Day-Ahead Energy Market, the entire Demand Reduction Offer, up to the Maximum Reduction offered into the Day-Ahead Energy Market, will be subject to all of the rules and requirements applicable to that market for the Operating Day, including the obligation to follow Dispatch Instructions.  Such a resource that clears shall be eligible for dispatch in the Real-Time Energy Market.

III.13.6.2.5.1.2.		Real-Time Energy Market Participation.
A Market Participant with a Demand Response Resource associated with an Active Demand Capacity Resource without a Capacity Supply Obligation, that did not submit an offer into the Day-Ahead Energy Market or was offered into the Day-Ahead Energy Market and did not clear, may submit a Demand Reduction Offer in the Real-Time Energy Market and shall be subject to all of the requirements associated therewith. Such a resource shall be eligible for dispatch in the Real-Time Energy Market. 

III.13.6.2.5.2.	Additional Requirements for Demand Capacity Resources Having No Capacity Supply Obligation.
Demand Capacity Resources without a Capacity Supply Obligation are subject to the following additional requirements:

(a)	complying with Section III.13.6.1.5.3(a) and (b) and with the auditing and rating requirements described in Section III.13.6.1.5.5 and the ISO New England Manuals; and

(b)	for Active Demand Capacity Resources, complying with the Operating Data collection requirements detailed in the ISO New England Manuals; and

(c)	for Active Demand Capacity Resources, complying with outage requirements as outlined in the ISO New England Operating Procedures and ISO New England Manuals.  Active Demand Capacity Resources having no Capacity Supply Obligation are not subject to the forced re-scheduling provisions for outages in accordance with the ISO New England Manuals and ISO New England Operating Procedures.

III.13.6.3. 		Exporting Resources. 
A resource that is exporting capacity not subject to a Capacity Supply Obligation to an external Control Area shall comply with this Section III.13.6.3 and the ISO New England Manuals. Intermittent Power Resources and Demand Capacity Resources are not permitted to back a capacity export to an external Control Area. The portion of a resource without a Capacity Supply Obligation that will be used in Real-Time to support an External Transaction sale must comply with the energy market offer requirements of Section III.1.10.7. 

III.13.6.4. 		ISO Requests for Energy. 
The ISO may request that an Active Demand Capacity Resource, a Generating Capacity Resource, or a Distributed Energy Capacity Resource having capacity that is not subject to a Capacity Supply Obligation provide energy for reliability purposes in the Real-Time Energy Market, but such resource shall not be obligated under Section III.13 of this Tariff by such a request to provide energy from that capacity.  If such resource does provide energy from that capacity, the resource shall be paid based on its most recent offer and is eligible for NCPC. 

III.13.6.4.1.		 Real-Time High Operating Limit. 
For purposes of facilitating ISO requests for energy under Section III.13.6.4, a Market Participant must report an up-to-date Real-Time High Operating Limit value at all times for a Generating Capacity Resource.