Based on existing tariff rules, tier 1 synchronized reserve is paid the tier 2 synchronized reserve market clearing price whenever the non-synchronized
reserve market clearing price (NSRMCP) rises above zero. However, the quantity of tier 1that should be compensated under this scenario can be interpreted in different ways. This issue seeks to more clearly define the amount of Tier 1 resources that should be compensated when the NSRMP is greater than zero. Further, because tier 1 synchronized reserves do not have an obligation to perform during synchronized reserve events, this issue charge questions the appropriateness of compensating tier 1 resources when the NSRMCP rises above zero. Stakeholders will review Tier 1 compensation rules and be asked to recommend Tier 1 compensation rule changes, if necessary.