[Federal Register Volume 70, Number 145 (Friday, July 29, 2005)]
[Notices]
[Pages 43863-43864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-4054]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER05-795-001]


ISO New England Inc. and New England Power Pool; Notice of 
Technical Conference

July 22, 2005.
    The Federal Energy Regulatory Commission hereby gives notice that 
members of its staff will hold a technical conference with ISO New 
England Inc. (ISO-NE) to discuss certain aspects of the ``Joint Request 
for Clarification, or in the Alternative, Rehearing; Request for 
Expedited Action; and Request for Deferral of Filing Requirements of 
ISO New England Inc. and New England Power Pool'' (Joint Request) filed 
on June 23, 2005 in Docket No. ER05-795-001.
    The conference will take place on Thursday, July 28, 2005 from 8:30 
a.m. to 9:30 a.m. (e.d.t.), in Room 3M-3 of the Federal Energy 
Regulatory Commission, 888 First St., NE., Washington DC 20426.
    Specifically, the purpose of the conference is to discuss the 
mechanism for selecting generating units to provide Regulation Service 
as proposed in an April 7 filing, and how Regulation Clearing Prices 
would be established. The conference will also discuss any possible 
inconsistencies in the description of the mechanism as found in (i) the 
proposed Tariff revisions (especially section III.1.11.5 and section 
III.3.2.2), (ii) the Joint Request,\1\ and (iii) the proposed revisions 
to the ISO-NE Manual for Market Operations, Manual M-11 (Revision XX--
ASM Phase I), section 3 (especially section 3.2.5).\2\
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    \1\ The Joint Request (at 6-7) describes a 7-step process for 
determining the Resources that would be selected to provide 
Regulation Service and for determining the Regulation Clearing 
Price.
    \2\ The ISO-NE Manual for Market Operations has not been filed 
with the Commission. It may be found on the ISO-NE Web site at 
http://www.iso-ne.com/rules_proceds/isone_mnls/M-11_Market%20Operations_(Revision%20XX)--10-01-05.doc.
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    During the conference, ISO-NE should be prepared to explain the 
proposed steps that would be taken to select generators to provide 
Regulation Service and to determine the Regulation Clearing Price. To 
aid in this discussion, Staff requests ISO-NE to use the hypothetical 
example described in the Appendix to this Notice to illustrate how 
Resources would be selected to provide Regulation Service and how the 
Regulation Clearing Price would be determined. ISO-NE should also be 
prepared to explain whether, under its proposal, the Resources selected 
to provide Regulation Service would be those whose total costs of 
providing Regulation Service are the lowest. In addition, ISO-NE should 
be prepared to discuss the rationale for recalculating updated 
Regulation Rank Prices for generating units with Regulation Offer 
Prices that are less than the initial Regulation Clearing Price, as 
described in section 3.2.5(2) of the proposed revision to Manual M-11.
    The conference is open for the public to attend. In addition, a 
telephone line will be provided for interested parties to call in and 
participate in the conference. Below is the call-in information for the 
conference call:
    Date: July 28, 2005.
    Time: 8:30 a.m. to 9:30 a.m. e.d.t.
    Toll-free Number: 877-546-1566.
    Passcode: 65271.
    Leader's Name: Mr. David Mead.
    Parties interested in submitting comments following the conference 
must do so no later than August 11, 2005.
    FERC conferences are accessible under section 508 of the 
Rehabilitation Act of 1973. For accessibility accommodations please 
send an e-mail to [email protected] or call toll free 1-866-208-
3372 (voice) or 202-208-1659 (TTY), or send a FAX to 202-208-2106 with 
the required accommodations.
    For more information about the conference, please contact: David 
Mead at (202) 502-8028 or [email protected].

Magalie R. Salas,
Secretary.

Appendix

    The following is a hypothetical example to be used during the 
technical conference to help illustrate how Resources would be 
selected to provide Regulation Service and how the Regulation 
Clearing Price would be determined.
    Assume that 150 MW of Regulation Capability must be procured to 
provide Regulation Service for a particular hour. Assume that 6 
different Resources, A through F, have submitted offers to provide 
Regulation Service. Each of the 6 Resources has an Automatic 
Response Rate of 10 MW per minute, and thus, a Regulation Capability 
of 50 MW (i.e., 10 MW per minute times 5 minutes). Although each 
Resource has submitted a different Energy Bid (shown in

[[Page 43864]]

the table below), the Energy Bid of each Resource is constant over 
its entire operating range. The day-ahead and real-time LMP 
throughout New England during the hour in question is $70/MWh. None 
of the bids from the Resources has any start-up or minimum load 
costs. The Capability-to-Service Ratio used in calculating the 
Regulation Service Credit for each Resource is 0.1. (ISO-NE should 
comment during the conference whether it is reasonable to assume 
that the Capability-to-Service Ratio used in selecting Resources 
would be the same for all Resources.)
    Assume that the 6 Resources submit the following in their bids 
to supply Regulation Service and Energy:

       Information in Bids to Supply Regulation Service and Energy and Derived Opportunity Cost, in $/MWh
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                                                                                                      Derived
                            Resource                                Regulation      Energy bid      opportunity
                                                                       offer                           cost
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A...............................................................             $10             $85             $15
B...............................................................              20              75               5
C...............................................................              40              70               0
D...............................................................              45              70               0
E...............................................................              50              40              30
F...............................................................              60              25              45
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    ISO-NE should be prepared to explain during the conference how 
its proposal would determine which of these Resources would be 
selected to provide Regulation Service, and how the Regulation 
Clearing Price would be determined. If additional information is 
also needed to determine which Resources are selected and what 
Regulation Clearing Price is calculated, ISO-NE should identify the 
information at the conference and add reasonable hypothetical values 
for this information to the above example.

[FR Doc. E5-4054 Filed 7-28-05; 8:45 am]
BILLING CODE 6717-01-P