Last update: 05/21/2019
Below, affected ISO customers can learn more about changes to existing systems or procedures related to the Annual Reconfiguration Transactions (ARTs) Project. This project is one of several that 91³Ô¹ÏÍø has undertaken, in collaboration with stakeholders, for the continued development of the region’s wholesale electricity markets. Target dates indicated below are subject to change.
See Participant Readiness Project Outlook for more detail on specifically affected customers and systems for this and other major projects.
Implemented: April 30, 2019
Under the Annual Reconfiguration Transactions (ARTs) project, 91³Ô¹ÏÍø replaced the annual capacity supply obligation (CSO) bilaterals with the new ARTs model to allow participants and their counterparties to acquire or shed CSO with price certainty. The previous annual CSO bilateral method, which transfered CSOs from one resource to another on a kilowatt-for-kilowatt basis, became obsolete when the marginal reliability impact (MRI) zonal demand curves were implemented with Forward Capacity Auction (FCA) #11 for capacity commitment period (CCP) 2020-2021. Under the MRI-based zonal curves, capacity was no longer considered fully substitutable on a kW-for-kW basis across zonal boundaries.
The new ARTs model, when used in conjunction with a demand bid or supply offer in an ARA, facilitates the equivalent of an annual private transaction. The demand bid or supply offer in the ARA accounts for each resource’s change in CSO quantity and any effect from partial substitutability, and the ART provides price certainty for the CSO transfer or acquisition.
Participants may opt to first become a party to a provisional ART prior to the ART submission window. The provisional ART option is provided to allow participants more time to enter ART data during the much longer provisional ART window, which opens when the FCA is approved and closes concurrent with the opening of the ART and ARA submission window. Provisional ARTs automatically convert to ARTs upon the opening of the ART and ARA submission window.
During the conversion, provisional ARTs are validated as if the ART was entered upon the opening of the ART and ARA submission window. Provisional ARTs that fail validation during the conversion process are not converted to an ART and the related participants are notified.
ARTs entered during the provisional ARTs submission window or the ART and ARA submission window require the initiating participant to:
The counterparty responding to the transaction is required to:
Participants with ARTs also enter their associated bids or offers into the ARA; however, ARA bids or offers that do not clear the ARA will not result in a cancellation of the related ARTs.
ARTs are not approved under the following circumstances:
Before the ARA is conducted and through the closing of the ART and ARA window, FA exposure due to confirmed ARTs (along with ARA activity) is calculated and assessed on a daily basis based on the possible auction outcome with the highest FA obligation. Upon the close of the ART and ARA window, FA is assessed for the ARTs and ARAs. After the ARA is complete, FA from confirmed ARTs and cleared bids and offers is recalculated based on the actual auction clearing prices.
Affected market participants were required to take specific steps or adapt to changes in ISO Systems, as described below and should be mindful of additional time-bound items, some of which may require customers to take specific steps or adapt to changes in ISO systems after the project implementation date.
Please consider subscribing to Participant Readiness, Market Notices, Information Technology (IT) Notices, and MIS Report Issues to receive notices posted to the ISO calendar for future projects.
TIMING OR DEADLINE | SYSTEM | ACTION OR EVENT |
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April 30, 2019 several provisional ART windows open June 3, 2019 ART for CCP 2021-2022 ARA #1 August 1, 2019 ART for CCP 2020-2021 ARA #2 |
91³Ô¹ÏÍø SMD Application: Forward Capacity Market Reconfiguration Auction User Interface |
Users with an active digital certificate and the “FCM Reconfiguration Auction Bidding / External Maintainer” role assigned to their person record in the Customer and Asset Management System (CAMS) are able to submit provisional ARTs and ARTs Provisional ARTs submission windows open at go-live correspond with the following ARAs:
Participants will access the first effective ART submission window beginning June 3, 2019 for FCA #12 CCP 2021-2022 followed by FCA #11 CCP 2020-2021 August 1, 2019. (Refer to the 2019 Annual and Monthly FCM Events calendar under the documentation section for the most recent version) Effective with the monthly reconfiguration auctions and monthly CSO Bilateral periods for the eleventh CCP, the monthly fixed limits will shift to using truncation points which are the quantities at which price separation occurs along the zonal sloped demand curve |
June 3, 2019 |
Financial Assurance Management (FAM) |
Beginning with the opening of the CCP 2021-2022 ARA #1 submission window the capacity transfer revenue loss value in the “FCM incremental changes” section of the obligations detail display can be viewed for changes to FA as ARTs are confirmed and potential auction outcomes are calculated |
Forward Capacity Tracking System (FCTS) |
Rejected and accepted ARTs are visible in FCTS |
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MIS |
The ARA MIS report will be enhanced to include confirmed ART information upon the completion of each ARA |
The ISO conducted online training and information sessions for affected customers to learn about changes and ask questions in advance of project implementation. Please consider subscribing to ISO Training to receive notices posted to the ISO calendar for this project.
DATE | EVENT AND SUPPORTING MATERIALS |
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Q4-2018 |
Webinar: Quarterly Settlements Issues Forum (QSIF) |
Available now |
Forward Capacity Market (FCM) 101 lessons |
May 2022 |
Financial Assurance for the Forward Capacity Market
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The following documents were provided to market participants affected by the project for specific instructions on completing related tasks or processes and helpful answers to frequently asked questions.
DOCUMENT | NOTES (if necessary) |
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User Guide for the Forward Capacity Market Reconfiguration Auction |
Detailed guide describing the reconfiguration auction processes |
Detailed guide describing the FCM processes |
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Forward Capacity Market auction calendar for 2019 |