The California Independent System Operator (CAISO) board of governors has approved a slate of proposals that support grid reliability. One proposal would enable generating resources that are facing potential retirement to request that the CAISO provide an earlier assessment as to whether they are necessary for future reliable grid operations so they can better plan an orderly retirement. In the event CAISO finds that the resource is still needed, they will render a special procurement designation and execute an administrative contract that allows the plant to continue operating, with cost-of-service-based compensation. CAISO will consider such designations twice yearly, adding a new window in April in addition to the current November window. The board also approved a management recommendation to enter into a reliability must-run contract with the Metcalf Energy Center, which is needed to maintain grid stability. The Calpine-owned facility may be offered a utility contract in 2018. Further, the board accepted adjustments to the program that ensures plants providing energy under the state’s resource adequacy program will have the incentive to be consistent with offering its energy to the wholesale market. The adjustments also help to ensure that these resources will arrange for replacement resources should they be forced out of service. These changes will help ensure that plants meet their obligations to offer energy to the market especially during peak load conditions. CAISO will file any tariff related board-approved changes with the Federal Energy Regulatory Commission for its review.
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