1.
Please provide your organization’s comments on the Large Loads Enhancements draft tariff language in tracked changes.
Constellation appreciates CAISO’s substantial progress in developing tariff provisions for Large Loads and co-located generation. The draft language establishes useful study, modification, metering, operational, and market-participation provisions.
Constellation recommends targeted revisions to ensure the tariff implements CAISO’s stated policy that co-location and continued wholesale market participation can coexist. The tariff should also clearly assign responsibilities where the Eligible Customer, Load Serving Entity, Utility Distribution Company, retail supplier, and Scheduling Coordinator are different entities.
A. Section 25.5.1: Post-COD Modifications
Section 25.5.1 creates a pathway for adding co-located Large Load after COD, but states that the modification will be denied if CAISO determines Section 25.1 applies. The provision does not explain the basis for that determination, distinguish between curable and disqualifying changes, or identify the alternative process available to the generator.
Constellation recommends the following redline:
Section 25.5.1
Prior to making any modification after the Generating Facility’s Commercial Operation Date, including the addition of a co-located Large Load, the Generating Unit owner must first request that the CAISO evaluate whether Section 25.1 would apply to the modification.
In response to the Generating Unit owner’s request, the CAISO, in coordination with the affected Participating TO, will evaluate the proposed modification. The CAISO may engage the services of the applicable Participating TO to assess the modification.
The CAISO will inform the Generating Unit owner in writing whether Section 25.1 would apply to the modification and therefore be denied and will provide the technical and tariff basis for that determination. If Section 25.1 applies, the CAISO will identify the applicable Interconnection Request, modification, study, or other tariff process through which the Generating Unit owner may proceed.
Cots incurred by the Participating TO and the CAISO, if any, shall be borne by the party making the request under Section 25.5, and such costs shall be included in any CAISO invoice for modification assessment activities.
B. Section 25.7.6: Continued Wholesale Participation
Draft Section 25.7.6 appropriately requires studies to reflect the net impact of co-located generation and load, preserves access to RIS rights and services, and provides for the combined configuration to be reflected in the GIA.
The draft should also state the central policy principle reflected in the DFP and the October 1 discussion: serving co-located load does not require a generator to leave the CAISO market.
Constellation recommends adding the following paragraph after the first paragraph of Section 25.7.6:
An existing or new Generating Unit may serve a co-located Large Load while retaining all or a portion of its Interconnection Service and continued participation in the CAISO Markets, to the extent supported by the applicable Interconnection Studies, the operating capabilities of the combined configuration, the GIA, and applicable CAISO Tariff requirements. Serving a co-located Large Load will not, by itself, establish an intent to terminate, or constitute an event to trigger termination of wholesale market participation or retirement of the Generating Unit.
The CAISO and Participating TO will evaluate the requested configuration based on the maximum injections and withdrawals, requested Interconnection Service Capacity, expected operation of the Generating Unit and Large Load, applicable control technologies, and any enforceable limitations on simultaneous wholesale injections and service to the Large Load.
This language would implement the study-based, project-specific approach Constellation requested in its Straw Proposal comments. Constellation asked CAISO to evaluate what the combined configuration can provide rather than impose a categorical choice between serving load and remaining in the wholesale market.
C. Retirement Scenario 3
The draft tariff does not expressly connect the co-location provisions to CAISO’s Retirement Scenario 3 policy outlined in CAISO’s interconnection service capacity and deliverability retention for non-operating generating facilities initiative. The DFP states that Scenario 3 applies when a Participating Generator intends to terminate wholesale market participation while continuing to generate to serve load.
Constellation requests CAISO add the following paragraph to Section 25.7.6:
Retirement Scenario 3 applies only where the Generating Unit owner notifies CAISO it intends to terminate the Generating Unit’s participation in the CAISO wholesale market while continuing to generate to serve load through an applicable retail program. A Generating Unit that retains wholesale market participation and continues to satisfy its applicable bidding, availability, dispatch, metering, telemetry, and operating obligations will not be considered retired solely because it also serves co-located load.
The addition or service of a co-located Large Load will not, standing alone, terminate or reduce the Generating Facility’s existing Interconnection Service or eligibility to participate in the CAISO Markets. Any resulting limitation will be based on the electrical, reliability, operational, or studied impacts of the proposed configuration and the applicable requirements of the CAISO Tariff, GIA, and Participating TO tariff.
This language would align the tariff with CAISO’s policy distinction and avoid uncertainty for existing generation considering co-location.
D. Qualifying Capacity, NQC, Deliverability, and Market Participation
At the October 1 meeting, CAISO stated that a generator meeting its must-offer obligations and responding to dispatch would not have QC or NQC affected solely because it also serves onsite load, subject to project-specific review.
Constellation does not request that CAISO revise substantive RA eligibility rules in this initiative. The tariff should nevertheless prevent co-location itself from being treated as an automatic loss of QC, NQC, deliverability, or market eligibility.
Constellation recommends adding the following language to Section 25.7.6:
This Section does not alter the Qualifying Capacity, Net Qualifying Capacity, Deliverability Status, or eligibility to provide Energy, Ancillary Services, or Resource Adequacy Capacity of a Generating Unit serving a co-located Large Load. Any such treatment will be determined under the otherwise applicable CAISO Tariff and Local Regulatory Authority requirements based on the Generating Unit’s retained Interconnection Service, Deliverability Status, availability, performance, and compliance with applicable market obligations.
Where a co-located Large Load can reduce consumption in a measurable and enforceable manner, the CAISO may account for the resulting generation capability available for wholesale market participation consistent with applicable market, metering, telemetry, scheduling, dispatch, and performance requirements.
E. Section 25.7.3: Third-Party Scheduling Coordinators
Draft Section 25.7.3 assigns the relevant obligations to the Scheduling Coordinator representing the LSE’s service area. Section 25.7.3.1 allows a Large Load to use its own Scheduling Coordinator only if it is permitted to be its own LSE, NGR, or Participating Load.
Those provisions may not clearly address existing direct-access arrangements or other lawful structures in which the retail supplier, LSE, UDC or MSS, Eligible Customer, and Scheduling Coordinator are different entities.
FERC’s order defines an Eligible Customer to include a power marketer and a retail customer taking unbundled transmission service under a state retail-access program. The order also notes that Scheduling Coordinators identify the Eligible Customers they represent.
Constellation recommends revising Section 25.7.3 as follows:
Section 25.7.3 Load Serving Entity and Scheduling Coordinator Requirements
The Scheduling Coordinator representing the Load Serving Entity’s service area for the Large Load**, or another Scheduling Coordinator authorized under the CAISO Tariff and applicable Local Regulatory Authority requirements to represent the Large Load or the Eligible Customer taking transmission service on behalf of the Large Load,** will include the Large Load in its Bids, Scheduled Demand, and Meter Data, as applicable, for that area.
The applicable Eligible Customer, Load Serving Entity, Utility Distribution Company, MSS Operator, retail supplier, Large Load, and Scheduling Coordinator may satisfy the requirements of this Section through coordinated arrangements that clearly assign each tariff obligation and avoid duplicative submissions. The applicable arrangement must identify the Scheduling Coordinator responsible for submitting Bids, Scheduled Demand, Meter Data, forecasts, and real-time operational updates for the Large Load.
The Scheduling Coordinator also must provide the CAISO the following, specific to each Large Load it represents:
- Daily and hourly forecast data otherwise required for the CAISO Forecast of CAISO Demand.
- Any real-time material change from provided forecasts.
- Planned Outages, forced Outages, derates, and other conditions materially affecting consumption or operating capability.
- Operational status and real-time consumption in accordance with CAISO telemetry standards.
This revision would assign responsibility without requiring the service-area LSE’s Scheduling Coordinator to perform every function where another authorized Scheduling Coordinator lawfully represents the load or Eligible Customer.
F. Section 25.7.3.1: Large Load Scheduling Coordinator Requirements
Constellation recommends replacing the first sentence with the following:
If permitted by the Local Regulatory Authority to be its own Load Serving Entity, a Non-Generator Resource, or a Participating Load, the Large Load may elect to comply with the requirements of Section 25.7.3 and participate in the CAISO Markets through its own Scheduling Coordinator in lieu of the service-area Load Serving Entity Scheduling Coordinator.
A Large Load or Eligible Customer also may use another Scheduling Coordinator authorized under the CAISO Tariff and applicable Local Regulatory Authority requirements to perform scheduling, forecasting, market participation, or other responsibilities for the Large Load, provided that the responsible parties clearly assign all obligations under Section 25.7.3 and avoid duplicate or inconsistent submissions.
A Large Load participating as a Proxy Demand Resource or Reliability Demand Response Resource will have the service-area Load Serving Entity Scheduling Coordinator comply with Section 25.7.3 and submit Scheduled Demand including the Large Load, but may have the Demand Response Provider or other Scheduling Coordinator comply with Section 4.13.
Constellation also recommends adding:
Nothing in Sections 25.7.3 or 25.7.3.1 modifies or restricts direct-access, community-choice, municipal, or other retail-service arrangements authorized by the applicable Local Regulatory Authority.
G. Add “Eligible Customer” to the Operative Large Load Provisions
The draft tariff rarely uses the term “Eligible Customer,” even though FERC framed the Section 206 proceeding around transmission service provided by Eligible Customers on behalf of Large Loads. This omission contributes to the ambiguity discussed at the October 1 meeting.
Constellation recommends adding the following language at the beginning of Section 25.7:
End Users, including Large Loads, interconnect to the CAISO Controlled Grid pursuant to Participating TO tariffs.
Transmission service on behalf of a Large Load will be taken by an Eligible Customer consistent with the CAISO Tariff and applicable Participating TO tariff. The Eligible Customer may be a different entity from the Large Load, Load Serving Entity, Utility Distribution Company, MSS Operator, retail supplier, or Scheduling Coordinator. The applicable agreements will identify the rights and responsibilities of each entity.
This would not determine retail-service rights. It would clarify the identity and role of the FERC-jurisdictional transmission customer.
H. Section 25.7.2: FILI
Draft Section 25.7.2 requires a FILI agreement describing the circumstances and mechanisms for temporary curtailment. It does not specify the minimum terms necessary to make those obligations predictable and enforceable.
Constellation recommends that at minimum, the pro forma agreement specifies the processes including applicable operating standards, responsible decision-makers, communication, and maximum authorized withdrawals. As such, we propose the following revision to the second paragraph:
Prior to the synchronization of the Large Load to the CAISO Controlled Grid, the CAISO, Participating TO, Eligible Customer taking transmission service on behalf of the Large Load, and Large Load will execute an agreement describing:
- The circumstances in which CAISO or the Participating TO may temporarily curtail the Large Load.
- The mechanism used to perform the curtailment.
- The maximum withdrawal level and applicable operating range.
- The transmission constraints, contingencies, or operating conditions supporting curtailment, to the extent they can be specified in advance.
- Curtailment notification, response time, duration, restoration, testing, and verification requirements.
- The respective responsibilities of CAISO, the Participating TO, Eligible Customer, Large Load, Load Serving Entity, and Scheduling Coordinator.
- The treatment of the Large Load in scheduling, forecasting, telemetry, planning, and real-time operations.
- The conditions for transition to firm service after completion of the applicable Network Upgrades or Interconnection Facilities.
I. Section 4.19: Market Participation
Draft Section 4.19 affirmatively recognizes that Large Loads may participate through existing CAISO market models.
Constellation recommends one clarifying addition:
Large Loads may participate in the CAISO Markets using any model where they are capable of complying with the CAISO Tariff requirements, including without limitation as Proxy Demand Resources, Reliability Demand Response Resources, Participating Loads, and Non-Generator Resources. A Large Load may participate through its own Scheduling Coordinator or another Scheduling Coordinator authorized to represent the Large Load or applicable Eligible Customer under the CAISO Tariff and Local Regulatory Authority requirements. Large Loads participating in the CAISO Markets are eligible for all rights and subject to all obligations of the CAISO Tariff under those participation models.
This revision would align Section 4.19 with the requested clarification to Sections 25.7.3 and 25.7.3.1.
J. Appendix A: Large Load Definition
Constellation generally supports the proposed 50 MW definition but recommends addressing phased and commonly operated facilities.
Proposed redline:
Large Load means an End User located at a single site whose Point of Interconnection is to the CAISO Controlled Grid, and that has a peak load of 50 MW or greater. For purposes of this definition, CAISO and the applicable Participating TO will consider commonly owned, commonly controlled, or operationally integrated loads at the same site that share a Point of Interconnection or Interconnection Facilities based on their combined peak load. Separate metering, phased development, or separate equipment will not alone determine whether facilities constitute separate Large Loads.
K. Appendix KK Section 3.1
Appendix KK Section 3.1 allows Interconnection Service Capacity below Generating Facility Capacity.
Constellation recommends adding:
For a Generating Facility serving a co-located Large Load, the requested Interconnection Service Capacity may reflect the maximum expected net injection onto the CAISO Controlled Grid, subject to Interconnection Studies, enforceable operating limitations, and control technologies established in the GIA. The Generating Facility serving co-located Large Load shall not lose its Interconnection Service rights on the sole ground that it is serving the co-located Large Load.
L. Appendix KK Section 6.7.2.9
The final sentence allows CAISO and the PTO to note a changed co-location configuration in the GIA without updating the study results. That could create ambiguity over which rights and operating assumptions are effective.
Constellation recommends revising the final sentence:
For any co-located load addition or removal pursuant to the Participating TO tariff, if the CAISO and Participating TO determine that the change is a Material Modification or otherwise cannot be reflected in the Generating Facility’s Interconnection Study results, the CAISO and Participating TO will note the change in the GIA, but without modifying the Interconnection Study results.
The CAISO and Participating TO will provide the Interconnection Customer a written explanation of the determination, identify the affected study assumptions and Interconnection Service rights, and identify any available restudy, modification, downsizing, or new Interconnection Request process. The GIA will distinguish between the studied Interconnection Service and any additional configuration information included solely for notice or operational coordination.