[Federal Register: January 28, 2004 (Volume 69, Number 18)]
[Notices]
[Page 4128-4129]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ja04-46]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. ER02-1656-017 and EL03-216-001]
California Independent System Operator Corporation; Notice of
Agenda of Staff Technical Conference
January 21, 2004.
As announced in the Notice of Technical Conference issued on
December 16, 2003, the Commission Staff will convene a technical
conference on January 28-29, 2004, to discuss with state
representatives and market participants in California various
substantive issues related to the California Independent System
Operator's (CAISO) Revised MD02 proposal, including the flexible offer
obligation proposal, the residual unit commitment process, pricing for
constrained-output generators, marginal losses, and ancillary services
and other market efficiency issues not related to the mitigation of
market power. The market power mitigation issues will be discussed at
the technical conference proposed to be held in San Francisco,
California in early March 2004.
The conference will focus on the six issue areas identified in the
agenda, which is appended to this notice. The discussion of each topic
on the conference agenda will begin with a short presentation by the
Commission Staff to frame the issue, followed by an open discussion
amongst all participants. Participants are encouraged to be prepared to
discuss the issues substantively.
The conference will begin at 9 a.m. eastern time on both days, and
will adjourn at 5 p.m. eastern time on January 29, 2004. The conference
will be held in the offices of the Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC. The conference is
open for the public to attend, and registration is not required.
For more information about the conference, please contact: Olga
Kolotushkina at (202) 502-6024 or at olga.kolotushkina@ferc.gov.
Magalie R. Salas,
Secretary.
Agenda for January 28-29 Staff Technical Conference
I.Flexible Offer Obligation Proposal \1\
How will the implementation of this proposal
affect day-ahead (DA) and real-time (RT) market timelines?
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\1\ See California Independent System Operator Corporation, 105
FERC ] 61,140 (2003) (October 28 Order) at P 217-232.
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To what extent does the Flexible Offer
Obligation provide adequate incentive to suppliers to participate in
CAISO's markets and provide CAISO with the reliability it needs?
Explain why, if at all, slow-start units
present special circumstances that justify exempting them from the
Flexible Offer Obligation requirements. What are the alternatives
for a slow-start unit to protect itself from unrecovered start-up
and minimum-load costs by bidding into the DA market?
II. Residual Unit Commitment (RUC) Issues \2\
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\2\ See October 28 Order at P 99-130.
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Energy Procurement Target.
Why is energy procurement needed if procured
capacity can ensure reliability?
Explain what impacts the procurement of
energy could have on the DA market, e.g., discouraging load from
bidding.
Would energy purchased through RUC receive a
different price than energy procured from the DA market? Explain.
Who would pay for energy that was procured
but ultimately not needed?
Treatment of and obligations for imports.
Explain the extent to which the purchase of
only capacity (not energy) gives imports sufficient incentive to
acquire the necessary transmission capacity across the ties.
Rescission of RUC availability payment.
How does the RUC availability payment differ
from a call option?
How does the RUC availability payment differ
from offering operating reserve capacity?
Netting of start-up/minimum load (SU/ML)
costs.
What are the pros and cons of permitting
units that are committed in the DA market to receive payment to
cover SU/ML costs in the DA market and retain all revenues for
subsequent sales?
Obligations from commitment in DA market and
RUC.
Explain how, if at all, units committed to
supply capacity in RUC are obligated to offer energy in real time.
What are the impacts to markets?
Discussion of use of daily or monthly gas
indices in cost-based option for SU/ML costs.
III. Ancillary Services (A/S) \3\
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\3\ See October 28 Order at P 79-84.
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To what extent should the ISO have well-
defined, transparent A/S procurement rules? How much flexibility
should the ISO have in determining when to purchase needed A/S? What
are the impacts?
[[Page 4129]]
Should market participants have the
opportunity to buy their A/S position back in the hour-ahead market?
What impact would this have on markets and system operators?
IV. Constrained-Output Generators \4\
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\4\ See October 28 Order at P 85-89.
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Explain when is it appropriate for
constrained-output generators to set the market clearing price.
Explain whether and why different pricing
rules between the DA and RT markets may be appropriate.
V. Marginal Losses \5\
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\5\ See October 28 Order at P 71-78.
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How can the excess revenues created through
marginal loss pricing be returned to the appropriate participants
without distorting efficient price signals?
How should entities that self-provide losses
be treated?
Discussion of alternative proposals,
including that of FPL Energy, LLC.
VI. Miscellaneous Issues
[FR Doc. E4-121 Filed 1-27-04; 8:45 am]
BILLING CODE 6717-01-P