California ISO to increase reliability reviews of proposed plant shutdowns
The board approved a proposal to enable generating resources facing potential retirement to request that the ISO assess whether they are necessary for future reliable grid operations earlier in the year, “so they can plan the orderly retirement of the facility.”
If the grid operator determines the resource is necessary for reliability, it will make a procurement designation and execute an administrative contract allowing the plant to continue operating with cost-of-service-based compensation. The ISO said it will now consider making those designations twice yearly, adding a new window in April in addition to the current November window.
The board also approved entering 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, the board said.
Additionally, the board approved changes 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.
