Capacity Markets Pricing and Policy Summit

Should Capacity Markets Be Tweaked or Overhauled?

December 16-17, 2020 | Arlington, VA ::

1220-capacity-markets

Capacity Markets are at the “b’leading edge” of the transformation of wholesale electric power markets.  This conference will feature ISO/RTO market design and operations staff, market participants offering generation, transmission and demand response resources, market monitors, pre-eminent electricity market design consultants and other market experts convene at this annual event.  They will discuss the relevant and urgent issues affecting the development of capacity resources to support resource adequacy and the operation of capacity markets.

The conference generates meaningful discussion on “real-time” issues among these different entities, to the end of advancing the management of capacity resources and the performance of the markets. Special attention will be paid to how capacity market designs influence the operation and performance of these complex systems, especially as they relate to pricing policies and outcomes that affect load, generation, and transmission market participants.

Learning Outcomes

• Review cross-RTO assessment of emerging and systemic issues and their response strategies
• Assess the impact of FERC’s ‘Minimum Offer’ Order on capacity market outcomes, market efficiency and market participant objectives in PJM
• Evaluate the track record of capacity markets in providing incentives for construction of resources that promote adequate operational flexibility
• Discuss the challenges of maintaining resource adequacy and operational capabilities with increased renewable resource penetration
• Examine market measures that would create, rank, or incentivize different types of capacity resources
• Assess FERC orders restricting narrowing exemptions to buyer-side mitigation (BSM) in New York
• Evaluate NY state’s proposal to add a social cost of carbon pricing in NYISO’s capacity zones as a preferred way to reduce market impacts of clean energy subsidies
• Discuss states’ consideration of exiting the market and developing an alternative system for acquiring capacity or ensuring resource adequacy that reflects state energy goals
• Evaluate the efficacy of ISO-NE’s competitive auctions with sponsored policy resources (CASPR)

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.3 CEUs for this conference and 0.7 for workshop.

 

Instructional Methods 

This program will use PowerPoint Presentations and group discussions.

Requirements For A Successful Completion Of Program 

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Who Should Attend

Representative Organizations

• Independent power producers (IPPs)
• Load-serving entities (LSEs) and utilities
• Local Distribution Companies (LDCs)
• Merchant power ventures
• Merchant transmission providers
• Wholesale trading companies
• Power marketers
• Energy service companies (ESCOs)
• Smart grid resource providers
• Demand response providers/aggregators
• Large energy customers
• Consumer advocates
• Regulatory counsel
• State regulatory staff

Department Areas

• Generation bidding
• Scheduling
• Asset management
• Marketing and business development
• Financial marketers
• Power trading
• Power supply analyst
• Contract administrators and analysts
• Energy management
• Revenue assurance
• Energy operations and supply
• Retail load supply
• Structured power
• Bulk power
• Energy finance and analysis
• Confirmation administration
• Procurement management

Wednesday, December 16, 2020 : Central Time

8:30 – 9:00 a.m. :: Log In

9:00 – 9:15 a.m. :: Technology Summary & Introductions

9:15 – 9:30 a.m. :: Conference Overview

Conf Chair: Barbara Clemenhagen, Vice President – Market Intelligence, Customized Energy Solutions Ltd (CES)

9:30 – 10:15 a.m. :: Capacity Market Design and Operations at a Crossroads?

This presentation will characterize the conditions and challenges confronting centralized capacity markets as they enter their third decade of operation.  It will provide the foundation for the discussions that ensue during the next two days of the conference.

Scott Harvey, Consultant, FTI Consulting

10:15 – 10:30 a.m. :: Morning Break

10:30 – 11:45 a.m. :: Capacity Market Initiatives to Address Evolution in the Generation Asset Base

ISOs/RTOs that administer capacity markets will explain how their respective market designs are generally adjusting with public policy changes and grid metamorphoses to 1) accommodate changes in the generation asset base and, 2) stimulate necessary resource development to maintain reliability into the future.  In addition, each system operator representative will be asked to address:

• How is success measured in their capacity market?
• Is the ISO considering changes to the way it evaluates the capacity value of resources to ensure that the capacity values reflect the incremental value of those resources in meeting load of a system with more intermittent resource output?
• Is the ISO considering changes to its capacity market design to better support the kind of resources it will need to balance load and generation in a system with more intermittent resource output?
• Is the ISO considering changes in the methods it uses to determine the amount of capacity needed to maintain the target level of reliability to better account for probabilistic resource output during net load peaks?
• Are opt-out rules efficient or necessary?
• Impacts of COVID-19 on capacity expansion and market dynamics
• Construction and interconnections disruptions
• Rule modification timelines and delays

Moderator: Emma Nix, Senior Advisor – RTO Services & Regulatory Affairs, Gabel Associates

ISO New England (ISO-NE)

Midcontinent ISO (MISO)

New York ISO (NYISO)

PJM Interconnection (PJM)

11:45 a.m. – 12:00 p.m. :: Morning Break

12:00 – 1:15 p.m. :: Bi-Lateral, Locational Preference and Non-Centralized Market Constructs for Providing Capacity Resources

ISOs/RTOs and large balancing areas that have resource adequacy mandates without a structured capacity market will explain how their respective constructs 1) satisfy system requirements as well as, or better than the eastern ISO capacity markets, 2) accommodate changes in the generation asset base, and 3) stimulate necessary development to maintain reliability into the future.

Guillermo Bautista Alderete, Director – Market Analysis & Forecasting, California ISO (CAISO)

Michael Evans, General Manager – Regulatory Affairs, Shell Energy North America (US) LP

Sarah Edmonds, Director – Transmission Services, Portland General Electric (PGE)

Evan Bahry, Executive Director, Independent Power Producers Society of Alberta (IPPSA)

1:15 – 2:00 p.m. :: Break for Lunch

2:00 – 3:30 p.m. :: Economic and Reliability Relationships of Capacity Markets to Energy, Operating Reserve (Ancillary Services) and Congestion Markets

• What is the role of each of these market mechanisms in achieving short-run and long-run reliability?
• What are the relationships among these market mechanisms in forming (input and output) prices and maintaining reliability?
• What are the principles that should apply in coordinating the design of these markets services and functions to achieve short-run and long-run reliability through market operations and price signals, and what are the impediments to achieving optimal design or outcomes?
• What are the economic and reliability implications of policies that rely too much or too little on any one of the above elements? Will such over-reliance compromise the overall efficacy and efficiency of the markets in general?
• How does retail rate design bolster or hinder the effectiveness or efficiency of the above elements in maintaining reliability and addressing the challenges of changing resource mixes – at local and regional levels?  
• Is reducing peak load always a desirable objective or could the resulting suppression of peak prices undermine the critical element of appropriate capacity compensation?
• Is rule-churn inescapable?

James F. Wilson, Principal, Wilson Energy Economics

Zach Anderson, CFO, Wolverine Power Cooperative

Marcus Hawkins, Director, Organization of MISO States (OMS)

Neil Fitch, Senior Director – Regulatory Affairs, NRG

Ron Carrier, Director – Government and Regulatory Affairs, Direct Energy

3:30 – 3:45 p.m. :: Afternoon Break

3:45 – 5:15 p.m. :: State-Level Policies and Other External Factors that Influence Regional Capacity Market Operations and Pricing

• To what extent do different states control or influence resource adequacy constructs at local and regional levels? What types of state or cooperative or municipal agencies impact reliability and economic outcomes?
• In what ways do state-federal jurisdictional relationships matter at the regional level?
• In what ways do intra-state jurisdictional relationships between and among state governments, cooperative boards, and municipal governments matter?
• What seems to be working or not working as well as it could, and what future changes are possible?
• How much impact does data center and other “aspirational” capacity — directly contracted for by corporations or communities to meet sustainability goals — have on the centralized capacity markets?
• Do the changes contemplated in the various ISOs adequately address the challenges of state-level policy constructs, or do these markets offer broader reform?

Moderator:

Robert Gee, President, Gee Strategies Group

Panelists:

Joseph Bowring, PJM Market Monitor and President, Monitoring Analytics

Devin Hartman, Director – Energy and Environmental Policy, R Street Institute

Jeff Riles, Global Energy Policy and Markets, Google

Ray Gifford, Managing Partner, Wilkinson Barker Knauer LLP (WBK Law)

5:30 – 6:30 p.m. :: Networking Reception

Thursday, December 17, 2020 : Central Time

8:30 – 9:00 a.m. :: Log In

 9:00 – 9:15 a.m. :: Conf Chair: Barbara Clemenhagen, Vice President – Market Intelligence, Customized Energy Solutions Ltd (CES)

9:15 – 10:30 a.m. :: Former Regulators’ Perspectives on the Efficacy of Capacity Markets and Their Alternatives to Achieve Comparable Outcomes

• What do actual regulators and administrators think about how current policies are working and what the future holds?
• How can states better support federal efforts, and vice versa?
• What could be done better to determine or manage changes in resource mixes and grid technologies?

Moderator:

Greg White, Executive Director, National Association of Regulatory Utility Commissioners (NARUC)

Panelists:

Suedeen Kelly, Partner, Jenner & Block

John Norris, Partner, State Public Policy Group (SPPG)

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:15 p.m. :: The Impacts of Increasing Reliance on Renewable, Natural Gas, Distributed and Storage Resources on Capacity Markets and Grid Expansion

• How does growing reliance on renewable and natural gas generation affect the economics and reliability of regional grid operations and expansion?
• What market and grid operations challenges does growing reliance on renewable and natural gas generation create? What challenges does it mitigate? 
• In what states or regions will natural gas generation be more of a complement, versus more of a substitute, for wind and solar generation?
• To what extent should utilities or states or regions coordinate natural gas generation (and other thermal) expansion? To what extent does the need for coordination depend on the growth and locations of renewable generation? 
• Should a forward market be introduced for clean energy attributes?
• What are recent and expected impacts on capacity markets of FERC orders and state actions related to energy storage?
• If Congress were to pass a storage-specific subsidy (c.f., ITC/PTC) to expressly incentivize storage development and deployment, would this have an impact on capacity markets?
• Will these system resource trends result in more or less interstate and interregional capacity trading?

Moderator: Michael Goggin, Vice President, Grid Strategies

Walter Graf, Associate, The Brattle Group

Steve Lieberman, Director – PJM Regulatory Affairs, American Municipal Power

Bryan Little, Senior Counsel, NiSource

12:15 – 1:00 p.m. :: Break for Lunch

1:00 – 2:30 p.m. :: Did FERC’s MOPR Orders Address the Real Problems and Provide Real Solutions for PJM and Potentially Other Capacity Markets?

As noted throughout the conference, wholesale energy markets designed around traditional baseload operating characteristics must increasingly accommodate a much different, evolving profile of  variable resources penetrating their systems.  Add to that the growing emergence in the market mix of certain capacity resources that have non-ISO, extra-jurisdictional economic standing.  Those and other complications are confounding the methods used to evaluate resource adequacy and, particularly, for methods used to establish capacity market requirements and define compensation.  How will the FERC Order and ensuing rules reverberate among other ISOs and their efforts to achieve appropriate prices and adequate resources?  This panel will discuss the evolving need for new methods of carrying out probabilistic evaluations of resource adequacy needs, and how the PJM-specific MOPR Order and other ISO price formation measures could help or hurt efforts to ensure resource adequacy and reliability at reasonable costs (including opportunity costs of not doing alternatives).

Moderator:

David Sapper, Director – Market Intelligence, Customized Energy Solutions Ltd (CES)

Panelists:

Joseph Bowring, PJM Market Monitor and President, Monitoring Analytics

Jason Barker, Director – Wholesale Market Development, Exelon

Abram Klein, Managing Partner, Appian Way Partners

Matthew Larson, Partner, Wilkinson Barker Knauer LLP (WBK Law)

Ed Tatum, Vice President – Transmission, American Municipal Power

2:45 – 3:00 p.m. :: Afternoon Break

3:00 – 4:30 p.m. :: The Capacity Market Impacts of Transmission Adequacy Operations and Expansion

• How does and should transmission expansion, operations, and pricing interact with capacity, energy, and congestion market designs?
• What are the economic and reliability implications of dynamic line ratings and the use of transmission constraint violation shadow prices to define and manage energy market congestion?
• What are the best ways to ensure transmission adequacy for resource deliverability?
• Should transmission adequacy be satisfied through transmission planning?
• How will actual or possible ROE adjustments affect transmission expansion and resource deliverability?
• Should firm transmission reservations continue to be a requirement for capacity credits?
• Are transmission reservation requirements a barrier to interregional capacity trading?

Marcus Hawkins, Director, Organization of MISO States (OMS)

Rob Gramlich, Founder & President, Grid Strategies

Michael Chiasson, Vice President, Potomac Economics

Emma Nix, Senior Advisor – RTO Services & Regulatory Affairs, Gabel Associates

4:30 p.m. :: Conference Adjournment

• Guillermo Bautista Alderete, Director – Market Analysis & Forecasting, California ISO (CAISO)

• Zach Anderson, CFO, Wolverine Power Cooperative

• Jason Barker, Director – Wholesale Market Development, Exelon

• Evan Bahry, Executive Director, Independent Power Producers Society of Alberta (IPPSA)

• Joseph Bowring, PJM Market Monitor and President, Monitoring Analytics

• Ron Carrier, Director – Government and Regulatory Affairs, Direct Energy

• Michael Chiasson, Vice President, Potomac Economics

• Barbara Clemenhagen, Vice President – Market Intelligence, Customized Energy Solutions Ltd (CES)

• Sarah Edmonds, Director – Transmission Services, Portland General Electric (PGE)

• Michael Evans, General Manager – Regulatory Affairs, Shell Energy North America (US) LP

• Neil Fitch, Senior Director – Regulatory Affairs, NRG

• Robert Gee, President, Gee Strategies Group

• Ray Gifford, Partner, Wilkinson Barker Knauer LLP (WBK Law)

• Michael Goggin, Vice President, Grid Strategies

• Walter Graf, Associate, The Brattle Group

• Rob Gramlich, Founder & President and/or Michael Goggin, Vice President, Grid Strategies

• Devin Hartman, Director – Energy and Environmental Policy, R Street Institute

• Scott Harvey, Consultant, FTI Consulting

• Marcus Hawkins, Director, Organization of MISO States (OMS)

• Suedeen Kelly, Partner, Jenner & Block

• Abram Klein, Managing Partner, Appian Way Partners

• Matthew Larson, Partner, Wilkinson Barker Knauer LLP (WBK Law)

• Steve Lieberman, Director – PJM Regulatory Affairs, American Municipal Power

• Bryan Little, Senior Counsel, NiSource  

• Emma Nix, Senior Advisor – RTO Services & Regulatory Affairs, Gabel Associates

• John Norris, Partner, State Public Policy Group (SPPG)

• Jeff Riles, Global Energy Policy and Markets, Google

• David Sapper, Director – Market Intelligence, Customized Energy Solutions Ltd (CES)

• Ed Tatum, Vice President – Transmission, American Municipal Power

• Greg White, Executive Director, National Association of Regulatory Utility Commissions (NARUC)

• James F. Wilson, Principal, Wilson Energy Economics

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• You will receive a meeting invitation will include a link to join the meeting.
• Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
  • You will need to join the appropriate meeting at the appropriate time.
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

REGISTER NOW FOR THIS EVENT:

Capacity Markets Pricing and Policy Summit

December 16-17, 2020 | Arlington, VA

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Individual attendee(s) - $ 995.00 each
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