ISO-NE and NEPOOL Governance The Stakeholder Process

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ISO-NE and NEPOOL Governance The Stakeholder Process Powered By Docstoc
					              What is ISO-NE?
• ISO-NE serves as the Regional Transmission
  Organization (RTO) as well as the Control Area
  Operator and the Planning Authority for the New
  England Region

• ISO-NE operates the system in accordance with Market
  Rules, Operating and Planning Procedures approved by

• Except in limited circumstances, ISO-NE has sole
  authority to file for changes in these Rules and
  Procedures under Section 205 of the Federal Power
          Major ISO-NE Functions
• Minute-to minute operation of generation resources, load
  response resources and transmission facilities to maintain

• Oversee and administer the New England wholesale
  electric markets.

• Manage the New England electric system planning process.

• Administer the New England Open Access Transmission
  Tariff (OATT), including settlement and billing and
  performing interconnection studies.
             What is NEPOOL?
• Under current FERC practices, ISO-NE is required
  to consult with its stakeholders prior to filing any
  changes in the Market Rules and Procedures.

• NEPOOL serves as the stakeholder advisory body
  for ISO-NE, currently with 452 Members.

• Under the Participants Agreement, if NEPOOL
  disagrees with an ISO proposal by a sufficient
  majority, NEPOOL can file an alternative proposal
  with FERC and have it evaluated on a equal basis
  as the ISO proposal (i.e. “jump-ball” provisions.)
         How does NEPOOL work?
• For voting purposes, NEPOOL is organized into six
   –   Transmission Sector
   –   Generation Sector
   –   Suppliers Sector
   –   End-Users Sector
   –   Alternative Resource Sector
   –   Publicly-Owned Entity Sector

• Each Sector has roughly equal voting weight, with
  votes within the Sector spread equally among all
  How does NEPOOL work? (cont.)
• Functionally, NEPOOL is organized into one high-level
  voting Committee and three voting Technical

   – Participants Committee (PC): takes final action to
     represent NEPOOL organizational position.
   – Markets Committee (MC): reviews and recommends PC
     action on all proposals related to Market Rule changes.
   – Reliability Committee (RC): reviews and recommends PC
     action on all proposals related to maintaining system
   – Transmission Committee (TC): reviews and recommends
     PC action on all proposals related to transmission tariff.
 How does NEPOOL work? (cont.)
• There are also a number of non-voting

  – Budget and Finance Committee
  – Membership Committee
  – Demand Response Working Group
  – Planning Advisory Committee (PAC)
 How does NEPOOL work? (cont.)
• During 2010 there were a total of 67 meetings
  of the PC and the three Technical Committees
  which resulted in 356 votes.

  – Participants Committee – 12 meetings/ 134 votes.
  – Markets Committee – 17 meetings/86 votes.
  – Reliability Committee – 24 meeting/ 114 votes.
  – Transmission Committee – 14 meeting/ 22 votes.
   Why Participate in the Stakeholder
• Sometimes the ISO listens to you.

• Sometimes the other Participants will listen to you.

• You gain a better understanding of how the proposed
  changes can impact your system.

• By constructive engagement, you build credibility so that
  people will listen t o you on other issues in the future.

• Sometimes its easier to influence a change if you engage
  early in the process rather than waiting until the end.
What issues are facing us over the next

• Compliance Filing for March 15 FERC Demand
  Response Compensation NOPR

  – Filing due July 22
  – Filing will include transition mechanism and rules for
    full integration.
  – FERC has said to pay resources full LMP during hours
    when they benefit the system.
  – Full integration not feasible for at least 3 years.
What issues are facing us over the next
             year? (cont.)
• ISO-identified strategic issues:

  – Potential retirement of oil-fired and other low
    capacity-factor resources.
  – Lack of operating flexibility of units in the existing
  – Integrating Non-Transmission Alternatives into the
    planning process.

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