Issue Details

The current rules in Reliability Pricing Model (RPM)/Capacity Performance (CP) provide that, for Generation Capacity Resources, shortfalls are identified and penalties are assessed during each CP Compliance Hour on a unit by unit basis. Market Sellers with Generation Capacity Resources that have bonus performance during the same CP Compliance Hour and in the same Locational Deliverability Area (LDA) as a Generation Capacity Resource with a shortfall are unable to offset the shortfall with the bonus performance. Under the current rules, capacity can be moved between accounts prospectively to be used in prospective Replacement Capacity transactions. In addition, capacity that meets narrow criteria including being in the same account on the day of a CP Compliance Hour as a Generation Capacity Resource with a shortfall may be used in a Replacement Capacity transaction after a CP Compliance Hour. Capacity is precluded from moving retrospectively between accounts to facilitate after CP Performance Assessment Hour(s) Replacement Capacity transactions amongst all market participants. The Task Force will evaluate the opportunities for all Capacity Resources to manage the risk of underperformance during CP Performance Assessment Hours.