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Enron Mail |
FYI. Should be of interest.
Best, Jeff ----- Forwarded by Jeff Dasovich/NA/Enron on 03/12/2001 10:04 AM ----- DISCRETIONARY LOAD CURTAILMENT PROGRAM The California Independent System Operator (ISO) has created the=20 Discretionary Load Curtailment Program (DLCP) to provide additional resourc= es=20 to the grid for the management of potential system emergency conditions. = =20 This program provides an energy-only payment and gives Loads total control= =20 over their curtailments, the control that many need to feel comfortable=20 participating in a demand response program. =20 The DLCP consists of two parts:=20 ? a Day Ahead Request, and=20 ? a Day Of Request for curtailment. =20 The ISO will pay Load Aggregators $500/MWh for Demand they offer and curtai= l=20 in the Day Ahead portion, and $750/MWh for Demand they offer and curtail on= =20 the Day Of portion. =20 This program will act as an umbrella for certain UDCs=01, programs under=20 Assembly Bill AB31x and also attracts any other aggregator that can bid loa= d=20 curtailments into the program. A Load Aggregator (LA) can be any company w= ho=20 enters into a DLCP Agreement with the ISO. Because AB31x provides payments= =20 for the bundled customers that are aggregated by the UDCs, an alternate=20 agreement will be made with them regarding procedures of operation. Non-UD= C=20 Load Aggregators will receive the performance payments from the ISO through= =20 their elected Scheduling Coordinator. =20 The DLCP will operate year-round during the hours of 7:00AM until 8:00PM fr= om=20 now until December 31, 2001. The need for this program will be evaluated= =20 throughout 2001 and implemented for 2002 if needed. Some provisions includi= ng=20 trigger mechanisms and payments may be re-evaluated and changed based on=20 Summer 2001 experience. =20 The ISO is accepting proposals from those interested in being a Load=20 Aggregator, starting on March XX, 2001 and continuing until the end of this= =20 program. For more information and a copy of the Request for Proposals, plea= se=20 visit our web site (www.caiso.com/clientserv/load) (this will be posted aft= er=20 the DLCP is approved). The DLCP is intended to provide the ISO with Demand curtailment from Loads= =20 that may not be able to participate in the ISO=01,s Participating Load Prog= ram=20 (Ancillary Services and Supplemental Energy) or the ISO=01,s Summer 2001 De= mand=20 Relief Program. However, contracted DRP Loads may participate in the DLCP= =20 during months outside of the DRP period. Additionally, existing UDC=20 interruptible customers that have met their yearly contractual obligation m= ay=20 participate. This new program is intended to allow end-use Loads to=20 participate, through a Load Aggregator, in a curtailment program while givi= ng=20 those Loads total discretion whether to participate in any day the program = is=20 activated by the ISO. Key Features of the DLCP Feature=09 DLCP Availability=09March XX, 2001 =01) December 31, 2002 Minimum Load Aggregator Portfolio=091MW Curtailed Energy Payment=09Day Ahead: $500/MWh =09Day Of: $750/MWh=20 Curtailment Window=097:00 AM =01) 8:00 PM DLCP Request=09Day Ahead Request: =09Upon ISO projecting a need for demand response (the ISO may call on this= =20 program based upon the best available temperature, load, and resource=20 forecast information) for specified hours of the next day. The DLCP Day=20 Ahead Request will be issued by 4:00PM =09Day Of Request: =09Upon ISO projecting a need for demand response (the ISO may call on this= =20 program based upon the best available temperature, load, and resource=20 forecast information) for specific hours on that day. The DLCP Day Of=20 Request will be issued by 8:00AM. =20 DLCP Offer=09LAs shall respond to the DLCP Day Ahead Request by 6:00pm of t= he day of=20 the DLCP Request.=20 =09 =09LAs shall respond to the DLCP Day Of Request by 9:00AM. =20 DLCP Confirmation =09The ISO will issue a DLCP Day Ahead Confirmation notic= e to=20 the LAs no later than 7:00 PM of the day before the curtailment. =20 =09 =09The ISO will issue a DLCP Day Of Confirmation notice to the LAs no later= than=20 9:30AM of the day of the curtailment. =20 DLCP Curtailment=09The LA shall assure that the Load is notified and curtai= ls in the=20 hour(s) as per the DLCP Confirmation notice. =20 Use of Generation=09Less than 1MW total behind each interval meter, with ap= proval from=20 AQMD. Order / Timing of Curtailment=09Because the DLCP Curtailment will be based = on the times=20 identified in the DLCP Confirmation notice the curtailments could occur=20 irrespective of the Emergency Status. Eligibility DLCP Load Aggregator In order to be eligible for the DLCP, Load Aggregators (including UDCs): 1. Must be able to provide a portfolio that contains a net reduction in=20 Demand of at least 1MW, either alone or when aggregated with other customer= s, 2. Must sign a DLCP Agreement, 3. Must have an ISO approved performance measurement process,=20 4. Must be capable of interacting with the ISO=01,s DLCP infrastructure as = well=20 as communicate with the end-use Load customer, 5. Must nominate an SC for settlement transactions with the ISO. DLCP End-Use Load Customer In order to be eligible for the DLCP, an end-use Load customer: 1. Must be able to provide a net reduction in Demand that meets the criteri= a=20 of the LA, or the Local Regulatory Authority, 2. Must have an interval meter approved by the Local Regulatory Authority, = or=20 have the appropriate measuring device(s) as required by the approved LA=01,= s=20 performance measurement process, 3. Must be located inside the ISO Control Area (ask your LA, if you are not= =20 sure), 4. Must not concurrently participate in the ISO=01,s Summer 2001 DRP, howev= er=20 may participate during months outside of the DRP contracted period (May=20 15-September 30, 2001),=20 5. If the end-use load is a UDC interruptible customer, the customer may=20 participate in the DLCP as long as the customer has met all the contractual= =20 obligations of an interruptible customer, 6. Must not have a Participating Load Agreement (PLA) with the ISO for the= =20 same Load offered under the DLCP, 7. Must obtain and provide positive proof of all necessary permits of=20 operation or approvals from the local Air Pollution Control District or Air= =20 Quality Management District for each individual Generating Unit designated= =20 for participation in the DLCP.=20 DLCP Process: ? DLCP Request 1. DLCP Day Ahead Request: The ISO will project the need for demand response. The ISO may call on this= =20 program based upon the best temperature, load, and resource forecast=20 information available by 4:00PM the day ahead. The ISO will issue a DLCP D= ay=20 Ahead Request by e-mail to all contracted Load Aggregators. The e-mail=20 notice will request the curtailment amounts for two-hour blocks within the= =20 ISO specified curtailment timeframe. The ISO will provide any constraints = in=20 the notice. 2. DLCP Day Of Request: The ISO will project the need for demand response. The ISO will base this= =20 projection upon the best temperature, load, and resource forecast informati= on=20 available by 8:00AM of the day of the request. The ISO will issue a DLCP Da= y=20 Of Request by e-mail to all Load Aggregators. The e-mail notice will reque= st=20 the curtailment amounts for each two-hour block requested. The ISO will=20 provide any constraints in the notice. ? DLCP Offer 1. By 6:00PM on the Day Ahead, the Load Aggregators will submit to the ISO,= =20 through the ISO DLCP website, their committed amounts of Load Curtailment. = =20 The ISO expects that the Load Aggregators will have contacted the End-Use= =20 Loads in their program to determine how much curtailment will be available= =20 and for which hours of the day.=20 2. By 9:00AM of the Day Of, the Load Aggregators will submit their committe= d=20 amounts of curtailment. =20 ? DLCP Confirmation Once the ISO reviews submitted DLCP Offers, ISO Operations will issue an=20 e-mail notice to both the Load Aggregators and their Scheduling Coordinator= s=20 accepting specific DLCP Offers. The ISO will issue the DLCP Confirmation= =20 notice by 7:00PM on the day the Day Ahead Request was made and by 9:30AM fo= r=20 the Day Of Requests. These confirmation notices will request that the Load= =20 Aggregators communicate to the End-Use Loads the required curtailment amoun= t=20 and duration. This will be the only communication (dispatch) to the Load= =20 Aggregators detailing the curtailment. =20 ? DLCP Performance The effectiveness of the DLCP will be based on the performance of each=20 End-Use Load in curtailing their confirmed curtailment amount. The ISO=20 expects that the committed curtailment will occur based on the hours as=20 confirmed through the DLCP Confirmation notices. An aggregator has the=20 responsibility to produce the demand reduction it confirms. There is no se= t=20 penalty, except that continued poor performance could result in revocation = of=20 the DLCP Agreement. =20 ? Performance Measurement Guidelines The measurement of performance for each End-Use Load will be performed by t= he=20 Load Aggregators. Each Load Aggregator will have an ISO approved performan= ce=20 measurement plan, which will be used to calculate the DLCP performance. Th= e=20 performance measurement plan shall include the following: ? For interval metered End-Use Loads the Load Aggregator will calculate a= =20 baseline Load profile. DLCP performance will be measured by the difference= =20 between baseline Load profile and the meter read for the hour(s) of=20 curtailment. =20 ? For non-interval metered Loads, DLCP performance will be calculated by=20 using a combination of sample measurements, historic data, process controls= ,=20 use of data loggers, and any other performance measurement method approved = by=20 the ISO. Load Aggregators shall obtained ISO approval prior to offering DL= CP=20 for non-interval metered End-Use Loads. (It should be noted that the ISO= =20 favors interval meters.) ? DLCP Settlement Each DLCP Offer for which a DLCP Confirmation was issued by the ISO shall b= e=20 uniquely identified. Therefore, DLCP Day Ahead and DLCP Day Of offers must= =20 be separately identified. The Load Aggregators (except for the UDCs) shall= =20 submit the DLCP Performance Measurement for each confirmed offer by using t= he=20 DLCP website no later than 45 days following the operating day of the DLCP= =20 Curtailment. The ISO will calculate the performance payment by simply=20 multiplying the DLCP energy price ($500/MWh for DLCP Day Ahead and $750/MWh= =20 for DLCP Day Of) by the amount of DLCP (in MWs) for each hour of confirmed= =20 curtailment. For each month the performance payments will be summed up for= =20 all the confirmed curtailments and paid to the Load Aggregator=01,s nominat= ed=20 Scheduling Coordinator. The payment will be made to the Scheduling=20 Coordinator in accordance to the ISO Payment Calendar timeline. =20 The ISO recognizes that UDCs acting as Load Aggregators will have specific= =20 rules to follow for the settlement of the dispatched curtailment. The UDCs= =20 will be responsible for following the settlement rules and regulations set= =20 forth by the CPUC for the End-Use Loads. =20 How to enroll in the DLCP: Load Aggregator 1. For a Load Aggregator, contact the ISO. The DLCP Request for Proposal= =20 (RFP) and Agreement are posted on the ISO website:=20 www.caiso.com/clientserv/load, 2. Contact the ISO. The ISO contact for the DLCP is: Glen Perez, Manager Data Quality California ISO gperez@caiso.com 3. Submit a proposal and enter into a DLCP Agreement. Responses to the RFP= =20 should be submitted to: California Independent System Operator 151 Blue Ravine Road Folsom, CA 95630 Attention: John Counsil, Contracts=20 End-Use Customers 1. Contact a Load Aggregator. A list of approved Load Aggregators will be= =20 posted on the ISO website: www.caiso.com/clientserv/load, 2. Contact your UDC. They may have an enrollment process to be followed. = =20 3. Any questions contact the ISO. The ISO contact for the DLCP is: Glen Perez, Manager Data Quality California ISO gperez@caiso.com
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