Announcement: Summer 2001 Reconfiguration Auctions of TCCs

adesell@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List:

An issue surfaced during the conduct of the current Spring 2001
TCC Auction related to import limit to New York from Hydro
Quebec (HQ) . In one round of the Spring auction, bids were
received requesting a large number of TCCs with a POI of the
HQ Proxy bus. These bids, if awarded, would exceed the HQ
import limit of 1200 MW used in the TCC auctions.

The 1200 MW HQ import limit was based on internal conversations
within the NYISO. These conversations indicated that congestion
differences between the HQ Proxy bus and internal New York buses
would be produced in SCUC at the 1200 MW import level. One
auction participant questioned the modeling of the HQ import limit.
After further review, the NYSIO agreed that the HQ import limit used
in the TCC auctions could be increased to 1500 MW, as long as
the same SCUC operating policy for the HQ import was followed.
This policy allows for a 1500 MW HQ import, if at least 300 MW of
that import is due to wheel through transactions.

The ISO will implement this operating policy in the TCC auction as
follows. TCC awarded from the HQ Proxy bus to internal New York
buses will be limited to 1200 MW. Total TCC awards from the HQ
Proxy bus will be limited to 1500 MW. TCCs awarded in the reverse
direction (i.e., into the HQ Proxy bus) will net against those TCCs
awarded in the opposite direction. Also, existing uses of the
transmission system will be included. Existing uses include
Grandfathered Rights, Grandfathered TCCs and TCCs awarded
in previous auctions that have not expired.

To incorporate this operating policy in subsequent TCC auctions,
the following bidding rule is being established:

For TCC bids from the HQ Proxy bus to an internal New York bus or
zone and from an internal New York bus or zone to the HQ Proxy bus,
PTID 61844 must be used for the POI or POW as appropriate.

For TCC bids that represent wheels through from the HQ Proxy bus to
another external proxy bus (i.e., NE Proxy, OH Proxy, PJM Proxy) and
from another external proxy bus to the HQ Proxy bus, PTID 23651 must
be used as the POI or POW as appropriate.

These PTID designations will allow the NYISO to identify TCC bids and
properly model those bids as they relate to the Hydro Quebec import
limit in the TCC auction.

PTIDs 61844 and 23651 were chosen because the LBMPs and the
individual components of the LBMPs in the Day-Ahead market are identical.

This new bidding opportunity in the TCC auctions will be allowed
beginning with the May 2001 Reconfiguration Auction scheduled for
April 23, 2001.