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ISO-NE and NEPOOL File with FERC for One-Year DR Delay

November 4, 2015 By Cheryl Kaften

The Independent System Operator – New England (ISO-NE) and New England Power Pool (NEPOOL) Participants Committee jointly filed (Docket ER16-167-001) with the Federal Energy Regulatory Commission (FERC) on October 30 to delay by one year– from June 1, 2017, until June 1, 2018 – the planned participation of demand response (DR) resources in the New England wholesale markets.

The delay of the full integration of demand response by 12 months stems from the uncertainty created by the decision of the U.S. Court of Appeals for the District of Columbia Circuit vacating Order No. 745, which is being reviewed by the U.S. Supreme Court.

In p a letter sent to FERC, ISO-NE and NEPOOL contend that, “if if the U.S. Supreme Court upholds the D.C. Circuit’s order vacating Order No. 745, demand response resource participation in the energy markets as currently envisioned in the ISO Tariff would not be permitted, which [would make]full integration [into the energy markets]…  impossible.”

In a memo to the NEPOOL Markets Committee sent out on July 31, ISO-NE noted that, “Under the circumstances, prudent resource management requires that full integration be delayed by one year.  Since a final decision by the U.S. Supreme Court will likely be issued by June 2016 and since full integration will take about two years to implement, a one-year delay should give the ISO sufficient time to implement full integration by June 1, 2018 if [the D.C. Circuit’s order] is reversed. Further, the delay will avoid an unnecessary expenditure of resources, if [the court’s ruling] is upheld.”

The filing is demonstrative of the uncertainty running rife throughout the power industry. Regional transmission operators are looking at contingency plans now that Order 745 has been vacated.

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