Important: Starting June 1, 2018, supplemental availability bilaterals (SABs) will be replaced by capacity performance bilaterals as part of the implementation of pay-for-performance (PFP) incentives with capacity commitment period (CCP) 2018–2019.
Supplemental availability bilaterals (SABs) allow generators to cover or supplement their capacity supply obligations (CSOs) during shortage events with the output of other generators. Shortage events are periods of stressed system conditions during which capacity resources’ performance is measured.
An SAB can be used to increase a generating capacity resource’s shortage event availability score, thereby reducing the size of its availability penalty. The SAB in no way affects either party’s CSO or the rights and obligations associated therewith.
See Market Rule 1, Section III.13.7.1, Performance Measures, for more information about how resource performance is measured during shortage events, and Section III.18.104.22.168.1.2, Availability Penalties, for more information about how penalties are determined.
1. Designation: The lead market participant for an eligible generator designates a portion of its capacity as a supplemental capacity resource for a specific term.
The designation must be made by the Day-Ahead Energy Market offer deadline for the first operating day of that term using the Supplemental Availability Designation User Interface, which is accessible on the SMD applications home page. The designation must indicate:
The portion of a resource designated as a supplemental capacity resource effectively becomes “obligated” for the term in which it is designated and is subject to the same energy market offer requirements as a resource with a CSO: it must offer into the Day-Ahead and Real-Time Energy Markets. Refer to Market Rule 1, Section III.13.6.1, Resources with Capacity Supply Obligations, for more information.
Note: A digital certificate is required to use the Supplemental Availability Designation User Interface. You must ask your Security Administrator for the ISO’s Customer and Assets Management System (CAMS) to provide you with one of the following roles for your expected activities:
If you don’t know who your Security Administrator is, contact Customer Support.
2. Shortage event performance: The ISO will consider a resource designated as a supplemental capacity resource as being available to supplement in an hour that contained a shortage event only if, during that hour, the resource was either:
3. SAB submittal: After the shortage event, the resource designated as a supplemental capacity resource can submit a SAB assigning some or all of its available megawatts in each hour of the shortage event to an under-performing generating capacity resource that has a CSO. The SAB must be submitted via the Internal Transactions application accessible on the SMD applications home page and must include the following information:
Please note the following rules when submitting an SAB:
4. Confirmation: The supplemented capacity resource must confirm the SAB in the Internal Transactions application accessible on the SMD applications home page. To be included in initial settlement, an SAB must be submitted and confirmed no later than 12:00 p.m. on the second business day after the end of the obligation month, or at such later deadline as specified by the ISO upon notice to market participants.
5. Review: The ISO reviews and processes the SAB.