Policy Suggestions

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Policy Suggestions Calpine

• Power System Resource Adequacy Working Group 
  Radisson Hotel, Marlborough
• June 5, 2003
• Language suggested by T. Kaslow and prepared by
  A. Ibrahim.

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Suggestion 1 Energy Prices for Non-ICAP Resources

• Resources not purchased as capacity in the ICAP
  market should be allowed to bid levels higher
  than ICAP resources.
• Investigate for the reasons for crediting
  capacity buyers rather than to generators the
  hourly energy revenue proceeds above 1000/MWh
  (energy price start up and no load cost).

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Suggestion 2 Restating Offer prices in Real Time

• Resources in the DA Marketparticularly non-ICAP
  resourcesshould be allowed to restate their
  offers prior to real time for MWhs not scheduled
  (in the DA market).

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Suggestion 3 Restrictions on Minimum Economic
Generation Levels

• Remove restrictions from non-ICAP resources on
  minimum economic generation levels as well as
  relax the restrictions of frequency of updates of
  start-up and no load bids.
• Include the restriction on minimum economic
  generation levels and restrictions on start-up
  and no load bid updates as condition on sale of
  ICAP. Resources not sold as ICAP would not be so
  restricted.

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Suggestion 4 Guiding Principle

• Any Services required from generators should be
  explicitly purchased through the market.