INITIATIVE:
Variable operations and maintenance cost review

Started: Dec 19, 2019

Leads
Kevin Head

Through this initiative, developed from the existing variable operations and maintenance cost review recurring stakeholder process, the ISO will update the operations and maintenance cost framework by providing definitions for operations and maintenance cost components, updating variable operations adder values, and calculating default maintenance adders.

Outcome: Effective as of trade date Jan. 1, 2022, the ISO updated the operations and maintenance cost framework by providing definitions for operations and maintenance cost components, updating variable operations adder values, and calculating default maintenance adders. This implementation defined the Operations and Maintenance (O&M) cost components, including how to differentiate between fixed and variable O&M costs, redefined the O&M adder components, and allowed market participants to bid in all of their variable maintenance costs through a new default maintenance adder in lieu of the current Major Maintenance Adder (MMA).

Status

Proposal Development Decision Implementation Completed/Closed
Jan 25, 2021 Revised draft tariff language posted
Oct 22, 2020 Final proposal posted
May 12, 2021 FERC approval (ER21-1266)
Mar 03, 2021 Tariff amendment (ER21-1266)
Nov 18, 2020 Board of Governors approval
Oct 01, 2021 Deployment
Oct 2021 Activation
Completed

Activities

Training


https://youtu.be/wIbSchmhVio https://www.caiso.com/Documents/Presentation-Variable-Operations-Maintenance-Cost-Review-Training.pdf


http://www.caiso.com/Documents/May12-2021-Order-VariableOperations-Maintenance-ER21-1266.pdf


http://www.caiso.com/Documents/Mar3-2021-TariffAmendment-VariableOperationsandMaintenance-ER21-1266.pdf

Web meeting


https://youtu.be/XY2rr9eFHh8 https://stakeholdercenter.caiso.com/InitiativeDocuments/RevisedDraftTariffLanguage-VariableOperations-MaintenanceCostReview.docx

Revised Draft Tariff Language - Variable Operations and Maintenance Cost Review

Web meeting


https://stakeholdercenter.caiso.com/InitiativeDocuments/StakeholderCommentsResponseMatrix-VariableOperations-MaintenanceCostReview-DraftTariffLanguage.pdf

Stakeholder Comments Response Matrix - Variable Operations and Maintenance Cost Review - Draft Tariff Language

https://youtu.be/PKp_iLyjJgw https://stakeholdercenter.caiso.com/InitiativeDocuments/TransitionPeriodDraftTariffLanguage-VariableOperations-MaintenanceCostReview.docx

Transition Period Draft Tariff Language - Variable Operations and Maintenance Cost Review

https://stakeholdercenter.caiso.com/InitiativeDocuments/DraftTariffLanguage-VariableOperations-MaintenanceCostReview.docx

Draft Tariff Language - Variable Operations and Maintenance Cost Review

View comments

Web meeting


https://youtu.be/urpncyOOmJQ https://stakeholdercenter.caiso.com/InitiativeDocuments/Presentation-VariableOperations-MaintenanceCostReview-Oct292020.pdf

Presentation - Variable Operations and Maintenance Cost Review - Oct 29, 2020

https://stakeholdercenter.caiso.com/InitiativeDocuments/FinalProposal-VariableOperations-MaintenanceCostReview.pdf

Final Proposal - Variable Operations and Maintenance Cost Review

https://stakeholdercenter.caiso.com/InitiativeDocuments/SupportingCalculations-FinalProposal-VariableOperations-MaintenanceCostReview.xlsx

Supporting Calculations - Final Proposal - Variable Operations and Maintenance Cost Review

View comments


https://stakeholdercenter.caiso.com/InitiativeDocuments/Notice of Decisional Classification Variable Operations and Maintenance Cost Review.pdf

Notice of Decisional Classification - Variable Operations and Maintenance Cost Review.pdf

Web meeting


https://stakeholdercenter.caiso.com/InitiativeDocuments/Presentation-VariableOperations-MaintenanceCostReview-Aug192020.pdf

Presentation - Variable Operations and Maintenance Cost Review - Aug 19, 2020

https://stakeholdercenter.caiso.com/InitiativeDocuments/DraftFinalProposal-VariableOperations-MaintenanceCostReview.pdf

Draft Final Proposal - Variable Operations and Maintenance Cost Review

https://stakeholdercenter.caiso.com/InitiativeDocuments/SupportingCalculations-DraftFinalProposal-VariableOperations-MaintenanceCostReview.xlsx

Supporting Calculations - Draft Final Proposal - Variable Operations and Maintenance Cost Review

View comments

Web meeting


https://stakeholdercenter.caiso.com/InitiativeDocuments/Presentation-VariableOperations-MaintenanceCostReview-May112020.pdf

Presentation - Variable Operation and Maintenance Cost Review - May 11, 2020
Updated 05/11/2020

https://stakeholdercenter.caiso.com/InitiativeDocuments/RevisedStrawProposal-VariableOperations-MaintenanceCostReview.pdf

Revised Straw Proposal - Variable Operations and Maintenance Cost Review
Updated 05/05/2020 to correct minor errors.

https://stakeholdercenter.caiso.com/InitiativeDocuments/SupportingCalculations-RevisedStrawProposal-VariableOperations-MaintenanceCostReview.xlsx

Supporting Calculations - Revised Straw Proposal - Variable Operations and Maintenance Cost Review
Updated 05/05/2020 to correct minor errors.

Web meeting


https://stakeholdercenter.caiso.com/InitiativeDocuments/Presentation-VariableOperations-MaintenanceCostReview-StrawProposal.pdf

Presentation - Variable Operations and Maintenance Cost Review - Straw Proposal

https://stakeholdercenter.caiso.com/InitiativeDocuments/StrawProposal-VariableOperations-MaintenanceCostReview.pdf

Straw Proposal - Variable Operations and Maintenance Cost Review

Working groups


http://www.caiso.com/Pages/documentsbygroup.aspx?GroupID=6A1A5E43-19A2-4F92-A38B-0EC631228F0C

Cost reports


http://www.caiso.com/Documents/VariableOperationsandMaintenanceCostDefinitionsReport-Jul022019.pdf http://www.caiso.com/Documents/VariableOperationsandMaintenanceCostReport-Dec212018.pdf http://www.caiso.com/Pages/documentsbygroup.aspx?GroupID=9702DE8C-7E10-4BD0-B9DF-E2BDD9CE691B