In accordance
with 5 CFR 1320, the information collection is approved for 3
years. Upon resubmission, it is suggested the agency revisit annual
cost burden estimates.
Inventory as of this Action
Requested
Previously Approved
07/31/2014
36 Months From Approved
02/28/2014
4,718
0
4,650
470,301
0
462,501
143,556
0
143,556
In this Final Rule in Docket RM10-17
on Demand Response, FERC amends its regulations under the Federal
Power Act to ensure that when a demand response resource
participating in an organized wholesale energy market administered
by a Regional Transmission Organization (RTO) or Independent System
Operator (ISO) has the capability to balance supply and demand as
an alternative to a generation resource and when dispatch of that
demand response resource is cost-effective as determined by the net
benefits test described in this rule, that demand response resource
must be compensated for the service it provides to the energy
market at the market price for energy, referred to as the
locational marginal price (LMP). This approach for compensating
demand response resources helps to ensure the competitiveness of
organized wholesale energy markets and remove barriers to the
participation of demand response resources, thus ensuring just and
reasonable wholesale rates. The tariff changes needed to implement
the compensation approach required in this Final Rule, including
the net benefits test, measurement and verification explanation and
proposed changes, and the cost allocation mechanism must be made on
or before 7/22/2011. All tariff changes directed herein should be
submitted as compliance filings pursuant to this Final Rule, not
pursuant to section 205 of the Federal Power Act (FPA).
Accordingly, each RTO's or ISO's compliance filing to this Final
Rule will become effective prospectively from the date of FERC
order addressing that filing, and not within 60 days of submission.
In addition, we believe that integrating a determination of the
cost-effectiveness of demand response resources into the dispatch
of the ISOs and RTOs may be more precise than the monthly price
threshold and, therefore, provide the greatest opportunity for load
to benefit from participation of demand response in the organized
wholesale energy market administered by an RTO or ISO. However, we
acknowledge the position of several of the RTOs and ISOs that
modification of their dispatch algorithms to incorporate the costs
related to demand response may be difficult in the near term. In
light of those concerns, we require each RTO and ISO to undertake a
study examining the requirements for and impacts of implementing a
dynamic approach which incorporates the billing unit effect in the
dispatch algorithm to determine when paying demand response
resources the LMP results in net benefits to customers in both the
day-ahead and real-time energy markets. FERC directs each RTO and
ISO to file the results of this study with FERC on or before
9/21/2012.
This final rule amends the
Commission's regulations to obligate ISOs and RTOs to pay the
market price for energy to demand response resources for demand
reductions within each respective ISO and RTO region, as
applicable. Requiring ISOs and RTOs to pay the market price for
energy to demand response resources for demand reductions in
response to price signals will potentially reduce the market
clearing price of electricity. The Commission has emphasized the
importance of demand response as a vehicle for improving the
competitiveness of organized wholesale electricity markets and
ensuring supplies of energy at just, reasonable and not unduly
discriminatory or preferential rates. Paragraphs 83-84 of Order 745
[footnote 166 from the order omitted here] state: "Nearly every
participant in the net benefits panel at the September 13, 2010
Technical Conference agreed that it would be counterproductive to
defer to the RTO or ISO stakeholder process to determine when
demand response provides net benefits without explicit guidance
from the Commission. We believe that this result, and the guidance
provided in this Final Rule will provide for timely improvements to
RTO and ISO market pricing for demand response resources
participating in organized wholesale energy markets. In addition to
requiring each RTO and ISO to construct the net benefits test
described herein, the Commission also imposes a second requirement
for each RTO and ISO to undertake a study, examining the
requirements for and impacts of implementing a dynamic approach to
determine when paying demand response resources LMP results in net
benefits to customers. We believe that integration of the billing
unit effect into RTO and ISO dispatch algorithms holds promise for
more accurately integrating demand resources on a dynamic basis
into the dispatch of the RTOs and ISOs. In theory, this could help
ensure that the cost-effective level of demand response resources
is dispatched or scheduled into the organized wholesale energy
markets. Given the potential of software enhancements to determine
the amount of cost-effective demand response resources purchased in
the day-ahead and real- time energy markets, we believe that it
would be useful for the Commission to know more about the
feasibility of and requirements for implementing improvements to
the existing dispatch algorithms. Therefore, we will require each
RTO and ISO to undertake a study, either individually or
collectively, examining the requirements for, costs of, and impacts
of implementing a dynamic net benefits approach to the dispatch of
demand resources that takes into account the billing unit effect in
the economic dispatch in both the day-ahead and real-time energy
markets, and to file the results of their study with the Commission
on or before September 21, 2012." See "Overview" section above for
further discussion.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
OMBSuppStateRM10-17-000_FinalRule revb.doc
Chairman statement 03-17-11-wellinghoff-dr.pdf
Electric Rates Schedules and Tariff Filings