By - Jon Brown

Capacity Markets Pricing and Policy Summit [POSTPONED]
April 28-29, 2020 | Arlington, VA

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Overview

Out of an abundance of caution and per CDC guidelines, this event has been postponed. We will post exact dates as soon as they are confirmed. 

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
  • 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

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.4 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.

Agenda

Tuesday, April 28, 2020

7:30 – 8:00 a.m. :: Registration and Continental Breakfast

8:00 – 8:15 a.m. :: Overview

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


8:15 – 9:15 a.m. :: Capacity Market Design and Operations at a Crossroads?

As centralized capacity markets enter their third decade of operation, the conditions and challenges confronting them threaten to overwhelm the efficient operation of the wholesale markets more generally: 

  • Will it be their last decade as part of the wholesale power market landscape?
  • Can they evolve to provide efficient investment incentives in an era of increasing levels of intermittent resource output, flexible capacity needs and extremely high (explicit or implicit) carbon costs?
  • Will the 2020s see a transition — away from primary reliance on capacity markets that supposedly provide investment incentives for market-based investments and towards fundamental reliance on energy market incentives?
  • Is primary reliance on energy market incentives the only practical industry alternative for market-based investment?
  • Does FERC possess the necessary policy tool-box and leadership to structure a regulatory framework that can support an electricity market increasingly reliant upon spot energy prices to support the capacity needed for balancing intermittent resource output?

This presentation will frame the discussions that ensue during the next two days of the conference.

Scott Harvey, Consultant, FTI Consulting


9:15 – 10:45 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?

ISO New England (ISO-NE)

Midcontinent ISO (MISO)

New York ISO (NYISO)

PJM Interconnection (PJM)

10:45 – 11:00 a.m. :: Morning Break


11:00 a.m. – 12:15 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 good 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.

Moderator:

Dan Williams, Director – Market Intelligence (West), Customized Energy Solutions Ltd (CES)

Panelists:

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

Michael Evans, General Manager – Regulatory Affairs Shell Energy North America (US), L.P 

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

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

12:15 – 1:30 p.m. :: Group Luncheon


1:30 – 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?

James F. Wilson, Principal, Wilson Energy Economics

Zach Anderson, CFO, Wolverine Power Cooperative

David Patton, Market Monitor and President, Potomac Economics

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 – 3:50 p.m. :: Afternoon Break


3:50 – 5:30 p.m. :: State-Level Policies, the “S” Word 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)

Bryan Little, Senior Counsel, NiSource

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


Wednesday, April 29, 2020

7:45 – 8:15 a.m. :: Continental Breakfast


8:15 – 10:00 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)

Philip D. Moeller, Executive Vice President – Business Operations Group and Regulatory Affairs, Edison Electric Institute (EEI) invited

10:00 – 10:20 a.m. :: Morning Break


10:20 – 11:45 a.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?

Michael Goggin, Vice President, Grid Strategies

Walter Graf, Associate, The Brattle Group

Gregg Dixon, Chief Executive Officer, Voltus

Brett Kruse, Vice President – Market Design, Calpine (invited)

John Fernandes, Senior Consultant – Emerging Technologies, Customized Energy Solutions Ltd (CES)

11:45 a.m. – 1:00 p.m. :: Group Luncheon


1:00 – 2:45 p.m. :: Did the FERC’s 2019 MOPR Order 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

Bill Booth, Partner, Michael Best & Friedrich LLP

Jason Barker, Director – Wholesale Market Development, Exelon

Abram Klein, Managing Partner, Appian Way Partners

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

2:45 – 3:00 p.m. :: Afternoon Break


3:00 – 4:45 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

Ed Tatum, Vice President – Transmission, American Municipal Power

4:45 p.m. :: Conference Adjournment

Workshop

Fundamental Elements of Capacity Market Design and Performance

Monday, April 27, 2020

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 – 8:45 a.m. :: Overview and Introductions

8:45 a.m. – 4:45 p.m. :: Workshop Timing

12:00 – 1:00 p.m. :: Group Luncheon

Overview

This workshop will provide an in-depth overview of the fundamentals of capacity market design. It will discuss the underlying benefits associated with capacity markets and the trade-offs between the use of capacity markets and scarcity pricing, focusing on key market design issues.

Learning Outcomes

  • Assess the underlying elements of capacity market design including market power implications, forward capacity procurement, and locational issues
  • Identify how capacity markets are designed to achieve resource adequacy and price stability
  • Examine the key drivers of the development of capacity markets including the impacts on borrowing and technology choice
  • Recognize the role of demand-side resources and renewables in capacity markets
  • Discuss historical auction results, trends and projections

Agenda

RTO/ISO Capacity Auction Mechanics

  • Regions covered
    • MISO
    • PJM
    • ISO-NE
    • NYISO

Structure and Relationships

    • Auction purposes and resource planning time horizons
    • Auction clearing objective functions
    • Local and non-local capacity requirements
    • Zonal transfer limits
    • Sub-regional transfer limits
    • Internal versus external supply
    • Supply offer and demand bid rules and limitations
    • Market power monitoring and mitigation
    • Opt-out rules, mechanics and economic implications

Non-Centralized-Market ISO/RTO Resource Adequacy Constructs

  • Regions covered
    • CAISO
    • SPP
    • NWPP
    • IESO and AESO
  • Structure and Relationships
    • Utility requirements
    • Roles of ISOs and regulators

Historical Auction Results, Trends, and Projections

  • Results from initial designs
    • Market regions
    • Non-market regions
  • Results from modified designs
    • Market regions
    • Non-market regions
  • Possible future outcomes
    • Planned changes and possible impacts

Instructor

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

David Sapper is Director of Market Intelligence for the MISO Region at Customized Energy Solutions Ltd (CES).  He joined the firm in January 2007.  Dr. Sapper provides reporting services regarding ongoing developments in the policies and rules of the MISO markets.  He also provides economic and regulatory consulting services, including litigation support.  In addition, he represents the interests of the MISO LSE Coalition, a group of 18 largely transmission dependent municipal, cooperative and similar electric utilities throughout the MISO region.  FERC has favorably relied on his testimony in cost allocation and market power cases. Dr Sapper earned a BA in Economics from Trinity University (TX) and a PhD in Economics from Vanderbilt University.

Speakers

  • Guillermo Bautista Alderete, Director – Market Analysis & Forecasting, California ISO (CAISO)
  • Zach Anderson, CFO, Wolverine Power Cooperative
  • Jason Barker, Director – Wholesale Market Development, Exelon
  • Bill Booth, Partner, Michael Best & Friedrich LLP
  • 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)
  • Gregg Dixon, Chief Executive Officer, Voltus
  • Michael Evans, General Manager – Regulatory Affairs Shell Energy North America (US), L.P 
  • John Fernandes, Senior Consultant – Emerging Technologies, Customized Energy Solutions Ltd (CES)
  • Neil Fitch, Senior Director – Regulatory Affairs, NRG
  • Robert Gee, President, Gee Strategies Group
  • Ray Gifford, Managing Partner, Wilkinson Barker Knauer LLP (WBK Law)
  • Michael Goggin, Vice President, Grid Strategies
  • Walter Graf, Associate, The Brattle Group
  • Rob Gramlich, Founder & 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
  • Brett Kruse, Vice President – Market Design, Calpine (invited)
  • Matthew Larson, Partner, Wilkinson Barker Knauer LLP (WBK Law)
  • Bryan Little, Senior Counsel, NiSource
  • Philip D. Moeller, Executive Vice President – Business Operations Group and Regulatory Affairs, Edison Electric Institute (EEI) (invited)
  • Emma Nix, Senior Advisor – RTO Services & Regulatory Affairs, Gabel Associates
  • John Norris, Partner, State Public Policy Group (SPPG)
  • David Patton, Market Monitor and President, Potomac Economics
  • Jeff Riles, Global Energy Policy and Markets, Google
  • Michael Robinson, Principal Advisor – Market Evaluation and Design, Midcontinent ISO (MISO)
  • 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 Commissioners (NARUC)
  • Dan Williams, Director – Market Intelligence (West), Customized Energy Solutions Ltd (CES)
  • James F. Wilson, Principal, Wilson Energy Economics

Location

Hilton Arlington

950 N. Stafford St

Arlington, VA 22203

Reserve your room:

please call 1-703-528-6000

Room Block Reserved For:

Nights of April 26 – 28, 2020

Room rate through EUCI:

$239.00 single or double plus applicable taxes
Make your reservations prior to March 24, 2020.

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

EventEarly Bird Before
Friday, April 10, 2020
Standard RateAttendees
Capacity Markets Pricing and Policy Summit [POSTPONED]US $ 1295.00 US $ 1495.00

This event has the following workshops:

Fundamental Elements of Capacity Market Design and PerformanceUS $ 895.00
US $ 995.00

Take advantage of these discounts!

  • Attend the Conference and workshop and pay US $ 2,095.00 per attendee (save US $ 95.00 each)

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before March 27, 2020 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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