Compliance initiative FERC Order No. 831 aims to establish several expectations for Regional Transmission Organizations (RTOs) and Independent System Operators (RTOs); this initiative changes the existing caps on incremental energy offers and discusses requirement information concerning a verification process for cost-based incremental offers, an offer cap structure, resource neutrality, and virtual and external transactions.
Effective on March 20, 2021 for both Real-Time and Day-Ahead Markets, the California ISO will deploy the functionality of FERC Order No. 831. Changes include:
· Hard Energy Bid Cap raised to $2,000/MWh
· Soft Energy Bid Cap set at $1,000/MWh
· Minimum Load Cost Hard Cap set at $2,000/MWh
· Market Penalty Parameters scaled up as applicable based on the $2,000/MWh Hard Energy Bid Cap
· After-the-fact cost recovery for eligible energy bids above the Hard Energy Bid Cap and eligible minimum load bids above the Minimum Load Cost Hard Cap, subject to approval from the ISO
Adapt2 is happy to provide its customers with insightful market information. For additional information concerning the FERC Order No. 831 Compliance filing, visit this link.