NYISO MST

New York Independent System Operator, Inc.

NYISO MST

Document Published On: 9/1/2020

Contents ---------------------------------------------- ......................................................................................... 27

New York Independent System Operator, Inc. Market Administration and Control Area Services

Tariff ............................................................................................................................................. 27

1 Introduction and Purpose ....................................................................................................... 28

2 DEFINITIONS ...................................................................................................................... 29

2.1 Definitions - A ................................................................................................................ 30

2.2 Definitions - B ................................................................................................................ 33

2.3 Definitions - C ................................................................................................................ 35

2.4 Definitions - D ................................................................................................................ 40

2.5 Definitions - E ................................................................................................................ 43

2.6 Definitions - F ................................................................................................................ 46

2.7 Definitions - G ................................................................................................................ 47

2.8 Definitions - H ................................................................................................................ 48

2.9 Definitions - I ................................................................................................................. 49

2.10 Definitions - J ................................................................................................................. 53

2.11 Definitions - K ................................................................................................................ 54

2.12 Definitions - L ................................................................................................................ 55

2.13 Definitions - M ............................................................................................................... 58

2.14 Definitions - N ................................................................................................................ 61

2.15 Definitions - O ................................................................................................................ 65

2.16 Definitions - P ................................................................................................................ 68

2.17 Definitions - Q ................................................................................................................ 70

2.18 Definitions - R ................................................................................................................ 71

2.19 Definitions - S ................................................................................................................ 76

2.20 Definitions - T ................................................................................................................ 81

2.21 Definitions - U ................................................................................................................ 84

2.22 Definitions - V ................................................................................................................ 85

2.23 Definitions - W ............................................................................................................... 86

2.24 Definitions - X ................................................................................................................ 87

2.25 Definitions - Y ................................................................................................................ 88

2.26 Definitions - Z ................................................................................................................ 89

3 Term and Effectiveness ......................................................................................................... 90

3.1 Effectiveness .................................................................................................................. 91

3.2 Term and Termination .................................................................................................... 92

3.3 Regulations ..................................................................................................................... 93

3.4 Access to Complete and Accurate Data ......................................................................... 94

3.5 ISO Procedures ............................................................................................................... 95

3.5.1 Market Problems Reporting Procedure ................................................................... 95

3.5.2 Provision of Data By Market Participants .............................................................. 96

3.5.3 Provision of Data By Transmission Owners to Each Other ................................... 97

3.6 Survival .......................................................................................................................... 99

4 Market Services: Rights and Obligations .......................................................................... 100

4.1 Market Services - General Rules .................................................................................. 101

4.1.1 Overview ............................................................................................................... 101

4.1.2 Independent System Operator Authority .............................................................. 101

4.1.3 Informational and Reporting Requirements .......................................................... 102

4.1.4 Scheduling Prerequisites ....................................................................................... 104

4.1.5 Communication Requirements for Market Services ............................................. 104

4.1.6 Customer Responsibilities .................................................................................... 105

4.1.7 Customer Compliance with Laws, Regulations and Orders ................................. 105

4.1.8 Commitment for Reliability .................................................................................. 106

4.1.9 Cost Recovery for Units Responding to Local Reliability Rules Addressing Loss of

Generator Gas Supply ......................................................................................................... 108

4.1.9.1 Eligibility for Cost Recovery ......................................................................... 108

4.1.9.1.1 Obligation to Test Automatic Fuel Swap Capability and Eligibility to Recover

Costs of Performing Fuel Swap Tests ............................................................................. 108

4.1.9.2 Variable Operating Cost Recovery ................................................................ 109

4.1.9.3 Additional Cost Recovery ............................................................................. 110

4.1.9.4 Billing ............................................................................................................ 112

4.1.9.5 Other Provisions ............................................................................................ 112

4.1.10 Reserved for Future Use ..................................................................................... 113

4.1.11 Dual Participation ............................................................................................... 113

4.2 Day-Ahead Markets and Schedules ................................................................................ 114

4.2.1 Day-Ahead Load Forecasts, Bids and Bilateral Schedules ................................... 114

4.2.1.1 General Customer Forecasting and Bidding Requirements .............................. 114

4.2.1.2 Load Forecasts................................................................................................... 115

4.2.1.3 Bids by Suppliers Using the ISO-Committed Flexible, Self-Committed Flexible

or ISO-Committed Fixed Bid Modes to Supply Energy and/or Ancillary Services ....... 115

4.2.1.3.1 General Rules ................................................................................................ 115

4.2.1.3.2 Bid Parameters ............................................................................................... 117

4.2.1.3.3 Upper Operating Limits, Lower Operating Limits, and Response Rates ...... 117

4.2.1.4 Offers to Supply Energy from Self-Committed Fixed Generators ................... 119

4.2.1.5 Bids to Supply Energy in Virtual Transactions ................................................. 119

4.2.1.6 Bids to Purchase Energy in Virtual Transactions.............................................. 119

4.2.1.7 Bilateral Transactions ........................................................................................ 119

4.2.1.8 Bids to Purchase LBMP Energy in the Day-Ahead Market ............................. 120

4.2.1.9 Day-Ahead Bids from Demand Reduction Providers and DSASP Providers to

Supply Energy from Demand Reductions ...................................................................... 120

4.2.2 ISO Responsibility to Establish a Statewide Load Forecast ................................. 121

4.2.3 Security Constrained Unit Commitment (“SCUC”) ............................................. 121

4.2.3.1 Reliability Forecast for the Dispatch Day ......................................................... 125

4.2.4 Reliability Forecast for the Six Days Following the Dispatch Day ...................... 126

4.2.5 Post the Day-Ahead Schedule ............................................................................... 128

4.2.6 Day-Ahead LBMP Market Settlements ................................................................ 129

4.3 In-Day Scheduling Changes ......................................................................................... 132

4.4 Real-Time Markets and Schedules ................................................................................. 133

4.4.1 Real-Time Commitment (“RTC”) ........................................................................ 133

4.4.1.1 Overview ........................................................................................................... 133

4.4.1.2 Bids and Other Requests ................................................................................... 133

4.4.1.2.1 Real-Time Bids to Supply or Withdraw Energy and Supply Ancillary Services,

other than External Transactions .................................................................................... 134

4.4.1.2.2 Real-Time Bids Associated with Internal and External Bilateral Transactions

136

4.4.1.2.3 Self-Commitment Requests ........................................................................... 137

4.4.1.2.4 ISO-Committed Fixed ................................................................................... 137

4.4.1.3 External Transaction Scheduling ...................................................................... 138

4.4.1.4 Posting Commitment/De-Commitment and External Transaction Scheduling

Decisions ......................................................................................................................... 138

4.4.1.5 External Transaction Settlements ...................................................................... 141

4.4.2 Real-Time Dispatch .............................................................................................. 141

4.4.2.1 Overview ........................................................................................................... 141

4.4.2.2 External Transaction Scheduling ...................................................................... 142

4.4.2.3 Calculating Real-Time Market LBMPs and Advisory Prices ........................... 143

4.4.2.4 Real-Time Pricing Rules for Scheduling Ten Minute Resources ..................... 143

4.4.2.5 Converting to Demand Reduction, Special Case Resource Capacity scheduled as

Operating Reserves, Regulation or Energy in the Real-Time Market ............................ 143

4.4.2.6 Converting to Demand Reduction Curtailment Services Provider Capacity

scheduled as Operating Reserves, Regulation or Energy in the Real-Time Market ....... 144

4.4.2.7 Post the Real-Time Schedule ............................................................................ 145

4.4.3 Real-Time Dispatch - Corrective Action Mode .................................................... 146

4.4.3.1 RTD-CAM Modes............................................................................................. 147

4.4.3.1.1 Reserve Pickup .............................................................................................. 147

4.4.3.1.2 Maximum Generation Pickup ........................................................................ 148

4.4.3.1.3 Base Points ASAP -- No Commitments ........................................................ 148

4.4.3.1.4 Base Points ASAP -- Commit As Needed ..................................................... 148

4.4.3.1.5 Re-Sequencing Mode .................................................................................... 149

4.4.3.2 Calculating Real-Time LBMPs ......................................................................... 149

4.4.4 Identifying the Pricing and Scheduling Rules That Apply to External Transactions

149

4.5 Real-Time Market Settlements ....................................................................................... 153

4.5.1 Settlement for Customers Scheduled To Sell Energy in Virtual Transactions in

Load Zones.......................................................................................................................... 155

4.5.2 Real-Time Market Settlements for Energy Injections or When Actual Demand

Reductions are Less Than Scheduled Demand Reductions ................................................ 155

4.5.2.1 General Rules for Suppliers .............................................................................. 155

A Supplier shall pay or be paid for Energy imbalance to account for differences between

Actual Energy Injections, real-time Energy schedules and Day-Ahead Energy schedules.

......................................................................................................................................... 155

4.5.2.2 Failed Transactions ........................................................................................... 157

4.5.2.3 Capacity Limited Resources and Energy Limited Resources ........................... 158

4.5.2.4 Demand Reductions .......................................................................................... 159

4.5.3 Real-Time Market Settlements for Energy Withdrawals Other Than in Virtual

Transactions ........................................................................................................................ 160

4.5.3.1 General Rules .................................................................................................... 160

4.5.3.2 Failed Transactions ........................................................................................... 161

4.5.4 Settlement for Customers Scheduled To Purchase Energy in Virtual Transactions in

Load Zones.......................................................................................................................... 162

4.5.5 Settlement for Trading Hub Energy Owner when POI is a Trading Hub ............. 162

4.5.6 Settlement for Trading Hub Energy Owner when POW is a Trading Hub .......... 163

4.6 Payments ......................................................................................................................... 164

4.6.1 Payments to Suppliers of Regulation Service ....................................................... 164

4.6.2 Payments to Suppliers of Reactive Supply and Voltage Support Service (“Voltage

Support Service”) ................................................................................................................ 164

4.6.3 Payments to Suppliers for Operating Reserves ..................................................... 164

4.6.4 Payments to Generators for Black Start Capability .............................................. 164

4.6.5 Day-Ahead Margin Assurance Payments ............................................................. 164

4.6.6 Bid Production Cost Guarantee Payments ............................................................ 165

4.6.6.1 Day-Ahead BPCG for Generators ..................................................................... 165

4.6.6.2 Day-Ahead BPCG for Imports .......................................................................... 165

4.6.6.3 Real-Time BPCG for Generators in RTD Intervals Other than Supplemental

Event Intervals ................................................................................................................ 166

4.6.6.4 BPCG for Generators for Supplemental Event Intervals .................................. 166

4.6.6.5 Real-Time BPCG for External Transactions ..................................................... 167

4.6.6.6 BPCG for Long Start-Up Time Generators Whose Starts Are Aborted by the ISO

Prior to their Dispatch ..................................................................................................... 167

4.6.6.7 BPCG for Demand Reduction in the Day-Ahead Market ................................. 168

4.6.6.8 BPCG for Special Case Resources .................................................................... 168

4.6.6.9 Day-Ahead BPCG for Demand Side Resources Scheduled to Provide

Synchronized Operating Reserves and/ or Regulation Service ...................................... 168

4.6.6.10 Real-Time BPCG for Demand Side Resources Scheduled to Provide

Synchronized Operating Reserves and/ or Regulation Service ...................................... 169

4.7 Procurement of Station Power ........................................................................................ 170

5 CONTROL AREA SERVICES: RIGHTS AND OBLIGATIONS ................................... 173

5.1 Control Area Services .................................................................................................. 174

5.1.1 Customer Compliance with Reliability Standards; Penalties ............................... 175

5.1.1.1 Customer Compliance with Reliability Standards: ........................................... 175

5.1.1.2 Direct Assignment of Penalty Costs: ................................................................ 175

5.1.1.3 ISO’s Recovery of Penalty Costs Through Schedule 11: ................................. 176

5.1.2 Incorporation of Certain Business Practice Standards .......................................... 176

5.2 Independent System Operator Authority...................................................................... 179

5.2.1 Suspension of Virtual Transactions ...................................................................... 179

5.2.2 Suspension of the Ability of Generators to Increase Their Bids in Real-Time .... 180

5.3 Control Center Operation ................................................................................................ 182

5.3.1 Back-Up Operation ............................................................................................... 182

5.3.2 Market Participant and Customer Obligations ...................................................... 183

5.3.3 Billing and Settlement........................................................................................... 183

5.4 Operation Under Adverse Conditions .......................................................................... 184

5.5 Major Emergency State................................................................................................... 186

5.6 Requirements For Inclusion Within The New York Control Area ................................. 187

5.7 Requirements For Entities Not Located Within The New York Control Area ............... 188

5.8 Communication and Metering Requirements for Control Area Services ....................... 189

5.8.1 Collection and Communication of Energy Forecasting Data by Intermittent Power

Resources that Depend on Wind or Solar Energy as Their Fuel ........................................ 190

5.9 Installed Capacity and Locational Export Capacity ........................................................ 192

5.10 NYCA Minimum Installed Capacity Requirement ..................................................... 194

5.11 Requirements Applicable to LSEs ............................................................................... 196

5.11.1 Allocation of the NYCA Minimum Unforced Capacity Requirement ............... 196

5.11.2 LSE Obligations .................................................................................................... 199

5.11.3 Load-Shifting Adjustments ................................................................................... 200

5.11.4 LSE Locational Minimum Installed Capacity Requirements ............................... 201

5.11.5 The Locational Minimum Unforced Capacity Requirement ................................ 204

5.11.6 Determination of Locality Exchange Factor: ........................................................ 206

5.12 Requirements Applicable to Installed Capacity Suppliers ........................................... 207

5.12.1 Installed Capacity Supplier Qualification Requirements ...................................... 207

5.12.2 Additional Provisions Applicable to External Installed Capacity Suppliers ........ 216

5.12.2.1 Provisions Addressing the Applicable External Control Area ...................... 216

5.12.2.2 Additional Provisions Addressing Internal Deliverability and Import Rights

216

5.12.2.3 One-Time Conversion of Grandfathered Quebec (via Chateauguay) Interface

Rights. 219

5.12.2.4 Offer Cap Applicable to Certain External CRIS Rights ................................ 221

5.12.3 Installed Capacity Supplier Outage Scheduling Requirements ............................ 221

5.12.4 Required Certification for Installed Capacity ....................................................... 222

5.12.5 Operating Data Reporting Requirements .............................................................. 223

5.12.5.1 Generators, System Resources, Energy Limited Resources, Energy storage

Resources, Responsible Interface Parties, Intermittent Power Resources, Limited Control

Run-of-River Hydro Resources and Municipally Owned Generation ............................ 224

5.12.5.2 Control Area System Resources .................................................................... 224

5.12.5.3 Transmission Projects Granted Unforced Capacity Deliverability Rights .... 224

5.12.5.4 Transmission Projects Granted External-to ROS Deliverability Rights ....... 225

5.12.6 Capacity Calculations, Operating Data Default, Value and Collection ................ 225

5.12.6.1 ICAP Calculation for Behind-the-Meter Net Generation Resources ............ 225

5.12.6.1.1 Adjusted DMGC ............................................................................................ 225

5.12.6.1.2 Adjusted Host Load ....................................................................................... 226

5.12.6.1.2.1 Average Coincident Host Load .................................................................. 226

5.12.6.1.2.2 Determination of Adjusted Host Load ........................................................ 227

5.12.6.2 UCAP Calculations........................................................................................ 227

5.12.6.3 Default Unforced Capacity ............................................................................ 231

5.12.6.4 Exception for Certain Equipment Failures .................................................... 232

5.12.6.5 Unforced Capacity, Outage Data and Operational Information Associated with

External-to-ROS Deliverability Rights ........................................................................... 232

5.12.7 Availability Requirements .................................................................................... 232

5.12.8 Unforced Capacity Sales ....................................................................................... 233

5.12.9 Sales of Unforced Capacity by System Resources ............................................... 236

5.12.10 Curtailment of External Transactions In-Hour.................................................. 237

5.12.11 Responsible Interface Parties, Municipally-Owned Generation, Energy Limited

Resources, Intermittent Power Resources, and Installed Capacity Suppliers with Energy

Duration Limitations ........................................................................................................... 237

5.12.11.1 Responsible Interface Parties ........................................................................ 237

5.12.11.1.1 Special Case Resource Average Coincident Load ...................................... 241

5.12.11.1.2 Use of a Provisional Average Coincident Load .......................................... 244

5.12.11.1.3 Reporting a SCR Change of Load or SCR Change of Status ...................... 247

5.12.11.1.3.1 SCR Change of Load ............................................................................... 247

5.12.11.1.3.2 SCR Change of Status .............................................................................. 247

5.12.11.1.4 Average Coincident Load of an SCR Aggregation ..................................... 248

5.12.11.1.5 Use of an Incremental Average Coincident Load ....................................... 248

5.12.11.2 Existing Municipally-Owned Generation ...................................................... 252

5.12.11.3 Energy Limited Resources ............................................................................. 253

5.12.11.4 Intermittent Power Resources ........................................................................ 253

5.12.11.5 Installed Capacity Suppliers with an Energy Duration Limitation ................. 254

5.12.12 Sanctions Applicable to Installed Capacity Suppliers and Transmission Owners

254

5.12.12.1 Sanctions for Failing to Provide Required Information ................................ 255

5.12.12.2 Sanctions for Failing to Comply with Scheduling, Bidding, and Notification

Requirements .................................................................................................................. 256

5.12.14 Energy Duration Limitations and Duration Adjustment Factors for Installed

Capacity Suppliers .............................................................................................................. 261

5.12.14.1 Counting Incremental Penetration of Resources with Energy Duration

Limitations ...................................................................................................................... 263

5.12.14.2 Adjusted Installed Capacity ............................................................................ 264

5.12.14.3 Periodic Review of Capacity Values ............................................................. 265

5.13 Installed Capacity Auctions ......................................................................................... 267

5.13.1 General Auction Requirements ............................................................................. 267

5.13.2 Capability Period Auction ................................................................................... 268

5.13.3 Monthly Auctions ................................................................................................. 269

5.13.4 Detailed Installed Capacity Auction Description ................................................. 269

5.14 Installed Capacity Spot Market Auction and Installed Capacity Supplier Deficiencies

270

5.14.1 LSE Participation in the ICAP Spot Market Auction ........................................... 270

5.14.1.1 ICAP Spot Market Auction ......................................................................... 270

5.14.1.2 Demand Curve and Adjustments .................................................................. 272

5.14.1.2.1 Periodic Reviews of ICAP Demand Curves Applicable Prior to the 2017/2018

Capability Year ............................................................................................................... 273

5.14.1.2.2 Periodic Reviews of ICAP Demand Curves Applicable Beginning with the

2017/2018 Capability Year ............................................................................................. 277

5.14.1.2.2.1 Annual Updates for Peaking Plant Gross Cost ........................................... 279

5.14.1.2.2.2 Annual Updates for Net Energy and Ancillary Revenue Offset ................ 281

5.14.1.2.2.3 Annual Updates for ICAP Demand Curve Parameters .............................. 285

5.14.1.2.2.4 Periodic Review Procedures ....................................................................... 288

5.14.1.3 Supplemental Supply Fee ............................................................................. 291

5.14.2 Installed Capacity Supplier Shortfalls and Deficiency Charges ........................ 293

5.14.2.1 General Provisions........................................................................................ 293

5.14.2.2 Additional Provisions Applicable to External Installed Capacity Suppliers 295

5.14.2.3 Additional Provisions Applicable to RIPs .................................................... 296

5.14.2.3.1 Shortfall for Provisional ACL ....................................................................... 296

5.14.2.3.2 Shortfall for Incremental ACL ...................................................................... 297

5.14.2.3.3 Shortfall for SCR Change of Status .............................................................. 298

5.14.2.3.4 Shortfall for RIP Portfolio Performance ...................................................... 299

5.14.3 Application of Installed Capacity Supplier Deficiency Charges ....................... 299

5.14.3.1 General Application of Deficiency Charges ................................................. 299

5.14.3.2 Installed Capacity Rebates ........................................................................... 299

(i) New York City.......................................................................................................... 299

(ii) Long Island ........................................................................................................... 300

(iii) G-J ......................................................................................................................... 300

(iv) Rest of State .......................................................................................................... 300

5.15 Payment and Allocation of Installed Capacity Auction Rebates ................................. 302

5.16 New Capacity Zone Study and Procedures .................................................................. 303

5.16.1 NCZ Study Methodology. ..................................................................................... 303

5.16.2 New Capacity Zone Boundary .............................................................................. 306

5.16.3 Indicative NCZ Locational Minimum Installed Capacity Requirement ............... 306

5.16.4 NCZ Report ........................................................................................................... 306

5.17 Expedited Dispute Resolution Procedures ................................................................... 308

5.17.1 Five-Day Consultation Period............................................................................... 308

5.17.2 Written Submissions ............................................................................................. 308

5.17.3 Appointment of the Arbitrator .............................................................................. 308

5.17.4 Arbitration Proceeding .......................................................................................... 309

5.17.5 Arbitration Award ................................................................................................. 309

5.17.6 Limited Appeal ..................................................................................................... 310

5.18 Generator Outages and Generator Obligations While in These Outages ..................... 311

5.18.1 Forced Outages and Commenced Repair Determinations .................................... 311

5.18.2 ICAP Ineligible Forced Outage ............................................................................ 315

5.18.2.3 ICAP Ineligible Force Outage Expiration ..................................................... 316

5.18.3 Mothball Outage ................................................................................................... 318

5.18.3.3 Mothball Outage Expiration .......................................................................... 319

5.18.4 Return to Service of Generators in a Mothball Outage or an ICAP Ineligible Forced

Outage to Resolve a Reliability Issue ................................................................................. 321

5.18.5 Temporary Use of Interconnection Point to Resolve a Reliability Issue .............. 322

5.18.6 Retired and Termination of Existing Interconnection Agreements ...................... 324

6 Confidentiality .................................................................................................................... 326

6.1 Access to Confidential Information ............................................................................. 326

6.2 Use of Confidential Information .................................................................................. 326

6.3 Disclosure of Bid Information...................................................................................... 327

6.4 Survival ........................................................................................................................... 327

7 Billing and Payment ............................................................................................................ 328

7.1 ISO as Counterparty; Right to Net or Set Off; ISO Clearing Account ........................ 329

7.1.1 ISO as Counterparty .......................................................................................... 329

7.1.2 Right to Net or Set Off Obligations Owed ........................................................ 329

7.1.3 ISO Clearing Account ....................................................................................... 329

7.1.4 ISO Liability for Payment ................................................................................. 329

7.2 Billing and Payment Procedures ..................................................................................... 331

7.2.1 Billing and Settlement Information ...................................................................... 331

7.2.2 Invoicing and Payment ......................................................................................... 331

7.2.2.1 Weekly Invoice ................................................................................................. 331

7.2.2.2 Monthly Invoice ................................................................................................ 332

7.2.2.3 Payment by the Customer ................................................................................. 332

7.2.2.4 Payment by the ISO........................................................................................... 333

7.2.3 Use of Estimated Data and Meter Data................................................................. 333

7.2.4 Method of Payment ............................................................................................... 333

7.2.5 TCC Auction Settlements ..................................................................................... 334

7.2.6 Verification of Payments ...................................................................................... 335

7.2.7 Payments for TSCs ............................................................................................... 335

7.3 Interest on Unpaid Balances ......................................................................................... 337

7.4 Billing Disputes ............................................................................................................ 338

7.4.1 Settlement Cycle for Services Furnished On and After January 1, 2009 ............. 338

7.4.1.1 ISO Corrections or Adjustments and Customer Challenges to the Accuracy of

Settlement Information ................................................................................................... 338

7.4.1.2 Review and Correction of Challenged Invoices ................................................ 340

7.4.2 Expedited Dispute Resolution Procedures for Unresolved Settlement Challenges

342

7.4.2.1 Applicability of Expedited Dispute Resolution Procedures .............................. 342

7.4.2.2 Initiation of Expedited Dispute Resolution Proceeding .................................... 343

7.4.2.3 Participation by Other Interested Customers .................................................... 343

7.4.2.4 Selection of a Neutral ........................................................................................ 344

7.4.2.5 Conduct of the Expedited Dispute Resolution Proceeding ............................... 345

7.4.2.6 Allocation of Costs ............................................................................................ 345

7.5 Customer Default ......................................................................................................... 346

7.5.1 Events of Default .................................................................................................. 346

7.5.2 Cure ....................................................................................................................... 348

7.5.3 ISO Remedies ....................................................................................................... 348

7.5.4 Forward Contracts ................................................................................................. 350

7.5.5 Notice to Customers ................................................................................................ 350

7.6 Survival ........................................................................................................................... 351

8 Eligibility For ISO Services ................................................................................................ 352

8.1 Requirements Common to all Customers ....................................................................... 352

8.1.1 Creditworthiness ................................................................................................... 352

8.1.2 Completed Application and Minimum Technical Requirements ......................... 352

8.1.3 Additional Eligibility Requirements for all Customers ........................................ 352

8.2 Additional Requirements Applicable to Suppliers ......................................................... 354

8.3 Additional Requirements Applicable to LSEs ................................................................ 354

8.4 Eligibility to Obtain Services Under This Tariff In Response To Sales Tax Issues ....... 354

9 Application And Registration Procedure ............................................................................ 359

9.1 Application ................................................................................................................... 359

9.2 Completed Application ................................................................................................... 359

9.3 Approval of Application and/or Notice of Deficient Application .................................. 360

9.4 Filing of Service Agreement ........................................................................................... 360

10 Recordkeeping and Audit ................................................................................................... 361

11 Dispute Resolution Procedure............................................................................................. 362

11.1 Purpose and Applicability of Dispute Resolution Procedure ....................................... 363

11.1.1 Purpose and General Provisions ........................................................................... 363

11.1.2 Exceptions ............................................................................................................. 363

11.2 Initiation of Dispute Resolution Proceedings.............................................................. 365

11.2.1 Notice of Dispute .................................................................................................. 365

11.2.2 Parties to Dispute Resolution Proceeding ............................................................. 365

11.3 Informal Discussions .................................................................................................... 366

11.4 Available Formal Proceedings ..................................................................................... 367

11.4.1................................................................................................................................... 367

11.4.2................................................................................................................................... 367

11.4.3................................................................................................................................... 367

11.5 Non-Binding Mediation ............................................................................................... 368

11.5.1 Selection of a Mediator ......................................................................................... 368

11.5.2 Scope of Mediator’s Duties .................................................................................. 368

11.5.3 Costs ...................................................................................................................... 369

11.6 Arbitration ................................................................................................................ 370

11.6.1 Procedural Provisions ........................................................................................... 370

11.6.1.1 Selection of an Arbitrator .............................................................................. 370

11.6.1.2 Scope of Arbitrator’s Duties .......................................................................... 371

11.6.2 The Arbitration Decision ...................................................................................... 371

11.6.3 Costs ...................................................................................................................... 372

11.6.4 Filing and Finality. ................................................................................................ 372

11.7 Consolidation of Related Arbitration Proceedings....................................................... 374

11.8 Ongoing Duty to Perform ............................................................................................. 375

11.9 Rights Under the Federal Power Act............................................................................ 376

12 Liability and Indemnification ............................................................................................. 377

12.1 Force Majeure ........................................................................................................... 377

12.2 Claims by Employees and Insurance ........................................................................ 378

12.3 Limitation on Liability.............................................................................................. 378

12.4 Indemnification ......................................................................................................... 379

12.5 Other Remedies ............................................................................................................ 380

12.6 Survival ........................................................................................................................ 380

13 Metering .............................................................................................................................. 381

13.1 General Requirements .............................................................................................. 381

13.2 Requirements Pertaining to Customers ........................................................................ 381

13.2.1 Load Serving Entities ............................................................................................ 382

13.2.2 Ancillary Service Suppliers .................................................................................. 382

13.2.3 Estimation of Metering ......................................................................................... 382

13.2.4 Energy Storage Resources .................................................................................... 382

13.3 Metering Requirements for Demand Side Resources .................................................. 383

13.3.1 Responsibility for Metering and Meter Data Services for Aggregations and

Demand Side Resources ..................................................................................................... 383

13.3.2 Meter Services Entity Requirements .................................................................... 385

13.3.2.1 Eligibility Determination for Meter Services Entity ..................................... 385

13.3.2.2 Standards of Conduct for Meter Services Entities ......................................... 388

13.3.2.3 ISO Audits and Corrective Actions ............................................................... 388

14 Miscellaneous ..................................................................................................................... 390

14.1 Notices ...................................................................................................................... 390

14.2 Tax Exempt Financing Pursuant to Section 142 (f) of the Internal Revenue Code ..... 390

14.3 LIPA and NYPA Tax Exempt Obligations .................................................................. 391

14.4 Amendments ............................................................................................................. 391

14.5 Applicable Law and Forum ...................................................................................... 392

14.6 Counterparts.............................................................................................................. 392

14.7 Waiver ...................................................................................................................... 393

14.8 Assignment ............................................................................................................... 393

14.9 Representations, Warranties & Covenants ............................................................... 393

15 ISO Market Administration and Control Area Service Tariff Rate Schedules ................... 394

15.1 Rate Schedule 1 - ISO Annual Budget Charge and Other Non-Budget Charges and

Payments ................................................................................................................................. 395

15.2 Rate Schedule 2 - Payments for Supplying Voltage Support Service.......................... 396

15.2.1 Responsibilities ..................................................................................................... 397

15.2.1.1 Suppliers ........................................................................................................ 397

15.2.2 Payments ............................................................................................................... 399

15.2.2.1 Annual Payment for Voltage Support Service .............................................. 399

15.2.2.2 Lost Opportunity Costs .................................................................................. 400

15.2.2.3 Other Payments to Synchronous Condensers and Qualified Non-Generator

Voltage Support Resources ............................................................................................. 402

15.2.3 Failure to Perform by Suppliers ............................................................................ 402

15.2.4 Failure to Respond to ISO's Request for Steady-State Voltage Control ............... 404

15.2.5 Failure to Provide Voltage Support Service When a Contingency Occurs on the

NYS Power System............................................................................................................. 405

15.2.6 Failure to Maintain an Automatic Voltage Regulator or Commence Timely Repairs

406

15.2.7 Consistence with Cross-Sound Scheduled Line Protocols ................................... 407

15.3 Rate Schedule 3 - Payments for Regulation Service .................................................... 408

15.3.1 Obligations of the ISO and Suppliers ................................................................... 408

15.3.1.1 The ISO shall: ................................................................................................ 408

15.3.1.2 Each Supplier shall: ....................................................................................... 409

15.3.2 Selection of Suppliers in the Day-Ahead Market and the Real-Time Market ...... 410

15.3.2.1 Bidding Process ............................................................................................. 411

15.3.3 Monitoring Regulation Service Performance and Performance Related Payment

Adjustments ........................................................................................................................ 412

15.3.4 Regulation Service Settlements - Day-Ahead Market .......................................... 412

15.3.4.1 Calculation of Day-Ahead Market Prices ...................................................... 412

15.3.4.2 Other Day-Ahead Payments .......................................................................... 414

15.3.5 Regulation Service Settlements - Real-Time Market ........................................... 414

15.3.5.1 Calculation of Real-Time Market Prices ...................................................... 414

15.3.5.2 Real-Time Regulation Capacity Balancing Payments, Regulation Movement

Payments and Performance Charges ............................................................................... 415

15.3.5.3 Other Real-Time Regulation Service Payments ............................................ 416

15.3.5.4 Performance-Based Adjustment to Payments for Regulation Service Providers

and Performance Based Charges .................................................................................... 417

15.3.5.4.1 Performance-Based Adjustment to Payments for Regulation Service Suppliers

417

15.3.6 Energy Settlement Rules for Generators Providing Regulation Service .............. 418

15.3.6.1 Energy Settlements ........................................................................................ 418

15.3.6.2 Additional Payments/Charges ....................................................................... 419

15.3.6.2.1 Additional Payments/Charges When AGC Base Point Signals Exceed RTD

Base Point Signals........................................................................................................... 419

15.3.6.2.2 Additional Charges/Payments When AGC Base Point Signals Are Lower than

RTD Base Point Signals.................................................................................................. 420

15.3.7 Regulation Service Demand Curve ....................................................................... 421

15.3.8 Temporary Suspension of Regulation Service Markets During Reserve Pickups and

Maximum Generation ......................................................................................................... 423

15.3A Rate Schedule “3-A” -Charges Applicable to Suppliers That Are Not Providing

Regulation Service .................................................................................................................. 424

15.3A.1 Persistent Undergeneration Charges ................................................................. 424

15.3A.1.1 Overgeneration Charges ................................................................................ 425

15.3A.1.2 Persistent Over-Withdrawal Charges ............................................................ 425

15.3A.2 Exemptions ........................................................................................................ 426

15.4 Rate Schedule 4 - Payments for Supplying Operating Reserves ................................. 429

15.4.1 General Responsibilities and Requirements ......................................................... 429

15.4.1.1 ISO Responsibilities ...................................................................................... 429

15.4.1.2 Supplier Eligibility Criteria ........................................................................... 431

15.4.1.2.1 Spinning Reserve: .......................................................................................... 431

15.4.1.2.2 10-Minute Non-Synchronized Reserve: ........................................................ 431

15.4.1.2.3 30-Minute Reserve: ....................................................................................... 432

15.4.1.2.4 Self-Committed Fixed and ISO-Committed Fixed Generators: .................... 432

15.4.1.3 Other Supplier Requirements ........................................................................ 432

15.4.2 General Day-Ahead Market Rules ........................................................................ 434

15.4.2.1 Bidding and Bid Selection ............................................................................. 434

15.4.2.2 ISO Notice Requirement ............................................................................... 435

15.4.2.3 Real-Time Market Responsibilities of Suppliers Scheduled to Provide

Operating Reserves in the Day-Ahead Market ............................................................... 435

15.4.3 General Real-Time Market Rules ......................................................................... 436

15.4.3.1 Bid Selection.................................................................................................. 436

15.4.3.2 ISO Notice Requirement ............................................................................... 437

15.4.3.3 Obligation to Make Resources Available to Provide Operating Reserves .... 437

15.4.3.4 Activation of Operating Reserves .................................................................. 437

15.4.3.5 Performance Tracking and Supplier Disqualifications .................................. 438

15.4.4 Operating Reserves Settlements - General Rules ................................................. 438

15.4.4.1 Establishing Locational Reserve and Scarcity Reserve Requirement Prices 438

15.4.4.2 Settlements Involving Suppliers of Operating Reserves Located on Long

Island 439

15.4.4.3 “Cascading” of Operating Reserves .............................................................. 439

15.4.5 Operating Reserve Settlements – Day-Ahead Market .......................................... 440

15.4.5.1 Calculation of Day-Ahead Market Clearing Prices ....................................... 440

15.4.5.2 Other Day-Ahead Payments .......................................................................... 443

15.4.6 Operating Reserve Settlements – Real-Time Market ........................................... 443

15.4.6.1 Calculation of Real-Time Market Clearing Prices ........................................ 443

15.4.6.2 Establishment of Scarcity Reserve Requirements in the Real-Time Market

During EDRP/SCR Activations ...................................................................................... 450

15.4.6.3 Operating Reserve Balancing Payments ........................................................ 451

15.4.6.4 Other Real-Time Payments ........................................................................... 452

15.4.7 Operating Reserve Demand Curves and Scarcity Reserve Demand Curve .......... 452

15.4.8 Self-Supply ........................................................................................................... 466

15.5 Rate Schedule 5 - Payments and Charges for Black Start and System Restoration

Services ................................................................................................................................... 468

15.5.1 Requirements ........................................................................................................ 468

15.5.2 Payments to Generators for Provision of Restoration Services Under the ISO Plan

and Transmission Owners’ Plans, Excluding the Consolidated Edison Plan ..................... 469

15.5.3 Charges to Support Payments to Generators Under the ISO Plan and Individual

Transmission Owners’ Plans, Excluding the Consolidated Edison Plan. ........................... 470

15.5.4 Payments to Generators Providing Restoration Services Under the Consolidated

Edison Plan and Recovery of Associated Costs ................................................................. 471

15.5.4.1 Payments to Generators that Provide Restoration Services Under the

Consolidated Edison Plan ............................................................................................... 474

15.5.4.1.1 Commitment Requirements for Restoration Services .............................. 474

15.5.4.1.2 Generator Testing and Training Requirements ........................................ 476

15.5.4.1.3 Payments to Generators for Providing Restoration Services Under the

Consolidated Edison Plan ........................................................................................... 476

15.5.4.1.3.1 Standard Compensation .......................................................................... 476

......................................................................................................................................... 477

15.5.4.1.3.2 Unit-Specific Compensation ................................................................... 479

15.5.4.1.3.3 Eligibility for Additional Cost Recovery ................................................ 480

15.5.4.1.3.4 Forfeiture of Payments As a Result of Failed Black Start Capability Tests

481

15.5.4.2 Charges to Support Payments to Generators Under the Consolidated Edison

Plan 481

Rate Schedule 5. Appendix I Restoration Services Certification Form ................................. 483

15.6 Rate Schedule 6 - Quick Start Reserves ..................................................................... 484

15.6.1 Qualification to Provide Quick Start Reserves ..................................................... 484

15.6.2 Purchase and Selection of Quick Start Reserves and Associated Duties.............. 485

15.6.3 Duty to Produce Energy ........................................................................................ 488

15.6.4 Failure to Achieve Timely Synchronization ......................................................... 488

15.6.5 Payments to Suppliers; Payments by Load Serving Entities ................................ 489

15.6.6 Dispute Resolution ................................................................................................ 490

15.7 Rate Schedule 7 - Charges for Intermittent Power Resource Forecasting Services ... 492

15.7.1 Responsibilities ..................................................................................................... 492

15.7.2 Charges ................................................................................................................. 492

15.8 Rate Schedule 8 – Payments to RMR Generators ................................................. 493

15.8.1 Payment to an RMR Generator Providing Service Pursuant to an RMR Agreement with an Availability and Performance Rate ............................................... 493

15.8.2 Performance Incentive Payment ....................................................................... 494

15.8.3 Availability Incentive Payment .......................................................................... 495

15.8.4 Limitation on Total Penalties, Sanctions and Deficiency Charges Assessed to

RMR Generators Providing Service Pursuant to an RMR Agreement with an

Availability and Performance Rate ................................................................................. 497

15.8.5 Payment to an RMR Generator Providing Service Pursuant to an RMR Agreement with a Rate Other Than an Availability and Performance Rate .............. 498

15.8.6 Payment to an Interim Service Provider .......................................................... 498

15.8.7 Recovery of Capital Expenditures or Above Market Rates from Former RMR

Generators, Former Interim Service Providers and Generators Returning from ICAP

Ineligible Forced Outages................................................................................................. 501

15.8.7.1 Recovery of Capital Expenditures from Former RMR Generators, Former

Interim Service Providers and Generators Returning from ICAP Ineligible Forced

Outages 502

15.8.7.2 Recovery of Above Market Revenues from Former RMR Generators ......... 506

15.9 Rate Schedule 9 – Reserved for future use ................................................................. 508

15.10 Rate Schedule 10 - Charges for Market Participants utilizing a Meter Services Entity in

the ISO Wholesale markets ..................................................................................................... 509

15.10.1 Responsibilities ................................................................................................. 510

15.10.2 Charges .............................................................................................................. 510

16 Attachment A - Form Of Service Agreement For New York ISO Market Administration and

Control Area Services Tariff ....................................................................................................... 511

17 Attachment B ...................................................................................................................... 515

17.1 LBMP Calculation ...................................................................................................... 516

17.1.1 LBMP Bus Calculation Method............................................................................ 517

17.1.1.1 Determining Shift Factors and Incremental System Losses .......................... 518

17.1.1.1.1 Determining Expected Unscheduled Power Flows ....................................... 519

17.1.1.1.2 Determining Expected Power Flows Resulting from NYISO Interchange

Schedules 519

17.1.1.1.3 Scheduled Lines and Chateauguay Interconnection with Hydro Quebec ..... 521

17.1.2 Real-Time LBMP Calculation Procedures ........................................................... 521

17.1.2.1 General Procedures ........................................................................................ 521

17.1.2.1.1 Overview ....................................................................................................... 521

17.1.2.1.2 Description of the Real-Time Dispatch Process ............................................ 523

17.1.2.1.2.1 The First Pass ............................................................................................. 523

17.1.2.1.2.1.1 Upper and Lower Dispatch Limits for Dispatchable Resources Other Than

Intermittent Power Resources That Depend on Wind as Their Fuel .............................. 524

17.1.2.1.2.1.2 Upper and Lower Dispatch Limits for Intermittent Power Resources That

Depend on Wind as Their Fuel ....................................................................................... 525

17.1.2.1.2.1.3. Setting Physical Basepoints for Fixed Generators .................................. 525

17.1.2.1.2.2 The Second Pass ........................................................................................ 526

17.1.2.1.2.2.1 Upper and Lower Dispatch Limits for Dispatchable Resources Other Than

Intermittent Power Resources That Depend on Wind as Their Fuel .............................. 527

17.1.2.1.2.2.2 Upper and Lower Dispatch Limits for Intermittent Power Resources That

Depend on Wind as Their Fuel ....................................................................................... 528

17.1.2.1.2.3 The Third Pass ........................................................................................... 528

17.1.2.1.3 Variations in RTD-CAM ............................................................................... 528

17.1.2.1.4 The Real-Time Commitment (“RTC”) Process and Automated Mitigation . 529

17.1.3 Day-Ahead LBMP Calculation Procedures .......................................................... 530

17.1.4 Determination of Transmission Shortage Cost ..................................................... 533

17.1.5 Zonal LBMP Calculation Method ........................................................................ 535

17.1.6 Real Time LBMP Calculation Methods for Proxy Generator Buses, Non-

Competitive Proxy Generator Buses and Proxy Generator Buses Associated with

Designated Scheduled Lines ............................................................................................... 537

17.1.6.1 Definitions ..................................................................................................... 537

17.1.6.2 General Rules ................................................................................................ 537

17.1.6.2.1 Pricing rules for Dynamically Scheduled Proxy Generator Buses ................ 538

17.1.6.2.2 Pricing rules for Variably Scheduled Proxy Generator Buses ...................... 538

17.1.6.2.3 Pricing rules for Proxy Generator Buses that are not Dynamically Scheduled

or Variably Scheduled..................................................................................................... 539

17.1.6.3 Rules for Non-Competitive Proxy Generator Buses and Associated Interfaces

539

17.1.6.3.1 Pricing rules for Non-Competitive, Dynamically Scheduled Proxy Generator

Buses 539

17.1.6.3.2 Pricing rules for Non-Competitive, Variably Scheduled Proxy Generator

Buses 539

17.1.6.3.3 Pricing rules for Non-Competitive Proxy Generator Buses that are not

Dynamically Scheduled or Variably Scheduled Proxy Generator Buses ....................... 540

17.1.6.4 Special Pricing Rules for Proxy Generator Buses Associated with Designated

Scheduled Lines .............................................................................................................. 541

17.1.6.4.1 Pricing rules for Dynamically Scheduled Proxy Generator Buses that are

associated with Designated Scheduled Lines ................................................................. 541

17.1.6.4.2 Pricing rules for Variably Scheduled Proxy Generator Buses that are

associated with Designated Scheduled Lines ................................................................. 541

17.1.6.4.3 Pricing rules for Proxy Generator Buses that are associated with Designated

Scheduled Lines that are not Dynamically Scheduled or Variably Scheduled Proxy

Generator Buses .............................................................................................................. 542

17.1.6.5 Method of Calculating Marginal Loss and Congestion Components of Real-

Time LBMP at Non-Competitive Proxy Generator Buses and Proxy Generator Buses that

are Subject to the Special Pricing Rule for Designated Scheduled Lines ....................... 543

17.2 Accounting For Transmission Losses ......................................................................... 544

17.2.1 Charges ................................................................................................................. 544

17.2.1.1 Loss Model .................................................................................................... 544

17.2.1.2 Residual Loss Payment .................................................................................. 544

17.2.2 Computation of Residual Loss Payments ............................................................. 544

17.2.2.1 Marginal Losses Component LBMP ............................................................. 544

17.2.2.1.1 Marginal Losses Component Day-Ahead ..................................................... 545

17.2.2.1.2 Marginal Losses Component Real -Time ...................................................... 545

17.2.2.2 Payments and Charges ................................................................................... 545

17.2.2.3 Day-Ahead Payments and Charges ............................................................... 545

17.2.2.4 Real-Time Payments and Charges ................................................................. 546

17.3 Bilateral Transaction Bidding, Transmission Service, Schedules and Curtailment ... 548

17.4 Sale and Award Of Transmission Congestion Contracts ("TCCs") ........................... 549

17.5 Congestion Settlements Related To the Day-Ahead Market and TCC Auction

Settlements .............................................................................................................................. 550

18 Attachment C -Formulas For Determining Bid Production Cost Guarantee Payments ..... 551

18.1 Introduction ................................................................................................................. 552

18.2 Day-Ahead BPCG For Generators .............................................................................. 553

18.2.1 Eligibility to Receive a Day-Ahead BPCG for Generators .................................. 553

18.2.1.1 Eligibility. ...................................................................................................... 553

18.2.1.2 Non-Eligibility (includes both partial and complete exclusions). ................. 553

18.2.2 Formulas for Determining Day-Ahead BPCG for Generators ............................. 553

18.2.2.1 Applicable Formula. A Supplier’s BPCG for Generator “g” shall be as

follows: 553

18.2.2.2 Variable Definitions. The terms used in this Section 18.2.2 shall be defined as

follows: 554

18.3 Day-Ahead BPCG For Imports ................................................................................... 556

18.3.1 Eligibility to Receive a Day-Ahead BPCG for Imports........................................ 556

18.3.2 BPCG Calculated by Transaction ID .................................................................... 556

18.3.3 Formula for Determining Day-Ahead BPCG for Imports .................................... 556

18.4 Real-Time BPCG For Generators In RTD Intervals Other Than Supplemental Event

Intervals................................................................................................................................... 557

18.4.1 Eligibility for Receiving Real-Time BPCG for Generators in RTD Intervals Other

Than Supplemental Event Intervals .................................................................................... 557

18.4.1.1 Eligibility. ...................................................................................................... 557

18.4.1.2 Non-Eligibility (includes both partial and complete exclusions). ................. 557

18.4.2 Formula for Determining Real-Time BPCG for Generators in RTD Intervals Other

Than Supplemental Event Intervals .................................................................................... 558

18.4.3 Bids Used For Intervals at the End of the Hour .................................................... 563

18.5.1 Eligibility for BPCG for Generators in Supplemental Event Intervals ................. 564

18.5.1.1 Eligibility ....................................................................................................... 564

18.5.1.2 Non-Eligibility (includes both partial and complete exclusions) .................. 564

18.5.1.3 Additional Eligibility ..................................................................................... 564

18.5.2 Formula for Determining BPCG for Generators in Supplemental Event Intervals

565

18.7. BPCG for Long Start-Up Time Generators Whose Starts are Aborted by the ISO Prior

to their dispatch ....................................................................................................................... 568

18.7.1 Eligibility for BPCG for Long Start-Up Time Generators Whose Starts Are

Aborted by the ISO Prior to their Dispatch ........................................................................ 568

18.7.2 Methodology for Determining BPCG for Long Start-Up Time Generators Whose

Starts are Aborted by the ISO Prior to their Dispatch ........................................................ 568

18.8 BPCG For Demand Reduction In The Day-Ahead Market ........................................ 569

18.8.1 Eligibility for BPCG for Demand Reduction in the Day-Ahead Market .............. 569

18.8.2 Formula for Determining BPCG for Demand Reduction in the Day-Ahead Market

569

18.9 BPCG For Special Case Resources............................................................................. 571

18.9.1 Eligibility for Special Case Resources BPCG ...................................................... 571

18.9.2 Methodology for Determining Special Case Resources BPCG ............................ 571

18.10 BPCG For Demand Side Resources Providing Synchronized Operating Reserves and /

or Regulation Service In The Day-Ahead Market .................................................................. 572

18.10.1 Eligibility for BPCG for Demand Side Resources Providing Synchronized

Operating Reserves and / or Regulation Service in the Day-Ahead Market ...................... 572

18.10.2 Formula for Determining BPCG for Demand Side Resources Providing

Synchronized Operating Reserves and / or Regulation Service in the Day-Ahead Market 572

18.11 BPCG For Demand Side Resources Providing Synchronized Operating Reserves and /

or Regulation Service In The Real-Time Market ................................................................... 573

18.11.1 Eligibility for BPCG for Demand Side Resources Providing Synchronized

Operating Reserves and / or Regulation Service in the Real-Time Market ........................ 573

18.11.2 Formula for Determining BPCG for Demand Side Resources Providing

Synchronized Operating Reserves and / or Regulation Service in the Real-Time Market . 573

18.12 Proration Of Start-Up Bid For Generators That Are Committed In The Day-Ahead

Market, Or Via Supplemental Resource Evaluation ............................................................... 575

18.12.1 Eligibility to Recover Operating Costs and Resulting Obligations .................. 575

18.12.2 Proration of Eligible Start-Up Cost when a Generator Is Not Scheduled, or Does

Not Operate to Meet the Schedule Specified in the Accepted Day-Ahead or SRE Start-Up

Bid. 576

18.12.2.1 Total Energy Required to be Provided in Order to Avoid Proration of a

Generator’s Start-Up Costs ............................................................................................. 576

18.12.2.2 Calculation of Prorated Start-Up Cost ........................................................... 577

18.12.2.3 Additional Rules/Clarifications that Apply to the Calculation of Prorated Start-

Up Cost 577

19 Attachment D – This Section is reserved for future use ..................................................... 579

20 Attachment E - Procedures for Reserving and Correcting Erroneous Energy and Ancillary

Services Prices ............................................................................................................................ 580

20.1 Market Clearing Price Errors Requiring Correction ................................................... 581

20.1.1 Calculation Errors ................................................................................................. 581

20.1.2 Errors in Selecting the Price-Setting Resource ..................................................... 581

20.2 Methodology for Correcting Prices ............................................................................ 582

20.3 Deadlines for Price Corrections .................................................................................. 583

20.4 Reporting Requirements ............................................................................................. 584

20.5 Liability ....................................................................................................................... 585

21 Attachment F - Bid Restrictions ......................................................................................... 586

21.1 Definitions................................................................................................................... 587

21.2 Supremacy of Attachment F ....................................................................................... 588

21.3 [This Section is Reserved for Future Use] .................................................................. 589

21.4 Establishment of Bid Restrictions ............................................................................... 590

21.4.1 Incremental Energy Bids and Minimum Generation Bids .................................... 590

21.4.2 Bids to Import or to Export Energy ...................................................................... 591

21.4.3 Bids to Schedule Wheels Through the NYCA ..................................................... 591

21.4.4 CTS Interface Bids ................................................................................................ 592

21.4.5 Virtual Load Bids and Virtual Supply Bids .......................................................... 592

21.4.6 Price Cap Load Bids ............................................................................................. 592

21.5 Applicability of Bid Restrictions ................................................................................ 593

22 Attachment G - Emergency Demand Response Program ................................................... 594

22.1 Effective Date ............................................................................................................. 594

22.2 Qualification Requirements For Curtailment Services Providers ............................... 594

22.3 Relationship Of The Emergency Demand Response Program To Other Demand Side

Response Measures ................................................................................................................. 594

22.4 Prohibition On The Double Subscription Of Load ..................................................... 595

22.5 ISO Deployment Of The Emergency Demand Response Program ............................ 595

22.6 Notification To Curtailment Service Providers .......................................................... 595

22.7 Voluntariness Of Emergency Demand Response Program ........................................ 596

22.8 Metering ...................................................................................................................... 596

22.9 Verification ................................................................................................................. 596

22.10 Payment .................................................................................................................... 597

22.10.1 Curtailment Service Provider Eligibility Requirements for Payment ............... 597

22.10.2 Payment for Program Deployment .................................................................... 597

22.10.2.1 Program deployment lasting two hours or fewer ........................................... 597

22.10.2.2. Program deployment lasting between two and three hours ........................... 598

22.10.2.3 Program deployment exceeding three hours ................................................. 598

22.11 Cost Allocation ........................................................................................................... 598

23 Attachment H - ISO Market Power Mitigation Measures .................................................. 600

23.1. Purpose and Objectives ............................................................................................... 601

23.2 Conduct Warranting Mitigation .................................................................................. 603

23.2.1 Definitions............................................................................................................. 603

23.2.2 Conduct Subject to Mitigation .............................................................................. 611

23.2.3 Conditions for the Imposition of Mitigation Measures ........................................ 611

23.2.4 Categories of Conduct that May Warrant Mitigation ........................................... 612

23.3 Criteria for Imposing Mitigation Measures ................................................................ 615

23.3.1 Identification of Conduct Inconsistent with Competition ..................................... 615

23.3.1.1 Thresholds for Identifying Physical Withholding ......................................... 615

23.3.1.2 Thresholds for Identifying Economic Withholding ....................................... 617

23.3.1.3 Thresholds for Identifying Uneconomic Production and Uneconomic

Withdrawal of Energy ..................................................................................................... 625

23.3.1.4 Reference Levels ........................................................................................... 627

23.3.2 Material Price Effects or Changes in Guarantee Payments .................................. 649

23.3.2.1 Market Impact Thresholds ............................................................................. 649

23.3.2.2 Price Impact Analysis .................................................................................... 650

23.3.2.3 Section 205 Filings ........................................................................................ 651

23.3.3 Consultation with a Market Party ......................................................................... 652

23.3.3.1 Consultation Process...................................................................................... 652

23.3.3.2 Consultation Requirements............................................................................ 654

23.3.3.3 Consultation Rules for Real-Time Guarantee Payment Mitigation ............... 655

23.3.3.3.1 Real-Time Guarantee Payment Consultation Process ................................... 655

23.3.3.3.2 Revising Reference Levels of Certain Generators Committed Out-of-Merit or

via Supplemental Resource Evaluation for Conducting Real-Time Guarantee Payment

Conduct and Impact Tests and Applying Mitigation in Accordance with Section

23.3.1.2.3 of these Mitigation Measures ......................................................................... 662

23.4 Mitigation Measures ................................................................................................... 665

23.4.