Mansfield, Massachusetts, July 18, 2022 - ENE’s SVP of Regulatory & Market Affairs Dave Cavanaugh participated in last week’s NEPOOL Markets Committee meeting discussing ISO New England’s (ISO) assessment and recommendations for the need of a winter reliability program for winter 2022/2023. Based on analysis of expected 22/23 winter conditions, expected fuel inventory and replenishment schedules, ISO operating procedures, and market enhancements ISO does NOT recommend implementation of a winter reliability program. ISO states that they should be able to operate the bulk power system reliably under mild winter conditions and exercise Operating Procedure #4 “Action During a Capacity Deficiency” to operate reliability under moderate winter conditions as experienced in winter 2017/2018.
Under more severe winter conditions, such as those experienced during winter 2013/2014, ISO may need to initiate controlled load shedding. Winter 2013/2014 experienced multi-day sustained cold weather events. Such events coincident with loss of a major electric generating source (nuclear, external ties Hydro Quebec or NY, etc.) could be conditions for load shed events. Included with ISO’s analysis was the anticipated cost for winter reliability programs with the Winter Reliability Program (WRP), last used in 2017/2018 at $25 Million, to cost $170 Million and the Inventoried Energy Program (IEP), revised by a recent D.C. Circuit Court ruling and currently scheduled for winters 23/24 and 24/25, to cost $157 Million. WRP is primarily a stored oil program whereas IEP would provide payment to oil, firm natural gas, LNG, coal, electric storage, and demand response under certain conditions. Click here to find the ISO New England “Winter 2022/2023 Analysis” presentation.
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ENE is the largest wholesale risk management and energy trading organization serving the needs of municipal utilities in New England. ENE works with numerous businesses, residents, and utilities to help promote the principles of conservation, efficiency, and environmental stewardship, and advances the many benefits available through integrated sustainability planning – including home energy audit programs, electric vehicle programs, wholesale energy procurement and risk management programs, regulatory and lobbying services. www.ene.org
Vincent J. Ragucci, IIIChief Strategy Oﬃcer
Phone: (508) 698-1240