MAY 28, 2013

Eric Winkler, Ph.D.PROJECT MANAGER, DEMAND RESOURCES

Schedule 24 Amendment to Incorporate North American Energy Standards Board Standards for Wholesale Demand Response and Energy Efficiency

Overview

• FERC Order No. 676-G adopting NAESB Standard for Wholesale Demand Response (Phase II) and Energy Efficiency (February 21, 2013)

• Summary of WEQ 015 and 021

• ISO-NE Compliance with Order

• Schedule for stakeholder review of Schedule 24 revision

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Order No. 676-G• FERC NOPR RM05-5-020 (April 19, 2012)

• Requires ISO/RTOs to revise their OATTs to incorporate by reference the NAESB Phase II Demand Response and Energy Efficiency Measurement and Verification (M&V) Standards

• M&V Standards became effective May 6, 2013

• OATT revisions incorporating M&V Standards can be included as part of an unrelated tariff filing– ISO-NE will be incorporating the M&V Standards in Schedule 24– Revision will be included in filing this summer– No waiver filing required

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Summary of Demand Response M&V Standards WEQ-015*IntroductionApplicabilityOverviewPerformance Evaluation Methodology

Definition of Terms (see NAESB WEQ Business Practice Standards WEQ-000,Abbreviations, Acronyms, and Definition of Terms)

Provision of Wholesale Electric Demand Response Energy ProductsApplicabilityPurpose015-1.0 General

Provision of Wholesale Electric Demand Response Capacity ProductsApplicabilityPurpose015-1.4 General

* Standards numbering is confusing

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Summary of Demand Response M&V WEQ-015 (cont)Provision of Wholesale Electric Demand Response Reserve ProductsApplicabilityPurpose015-1.8 General

Provision of Wholesale Electric Demand Response Regulation ProductsApplicabilityPurpose015-1.12 General

015-1.16 Maximum Base Load Evaluation015-1.19 Meter Before / Meter After015-1.22 Baseline Type-I (Interval Meter)015-1.25 Baseline Type-II (Non-Interval Meter)015-1.28 Metering Generator Output

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Summary of Energy Efficiency M&V WEQ-021

WEQ-000 Definition of Terms

021-1 Introduction (which was not incorporated by the Commission)

021-2 Applicability (which was not incorporated by the Commission)

021-3 Business Practice Standards

021-3.1 Energy Efficiency Resource Use Criteria in Wholesale Markets

021-3.2 General Measurement and Verification Plan Requirements

021-3.3 Post Installation M&V Report Components*

021-3.4 Performance Reporting

021-3.5 M&V Supporting Documents

021-3.6 M&V Methodologies

021-3.7 Energy Efficiency Baseline Conditions

021-3.8 Statistical Significance

021-3.9 Nominated Energy Efficiency Value Calculations / Demand Reduction Value Calculations

021-3.10 Measurement and Monitoring

021-3.11 Measurement Equipment Specification

021-3.12 Data Validation

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ISO Compliance With Order

• Completed review of compliance with both standards

• Revision to Schedule 24 of the OATT as follows:

Measurement and Verification of Wholesale Electricity Demand Response (WEQ-015, 2010 Annual Plan Items 4(a) and 4(b), March 21, 2011); and

Measurement and Verification of Wholesale Electricity Efficiency (WEQ-021 2010 Annual Plan Item 4(d), July 16, 2012; and excluding

021-1 through 021-1.1; and021-2 through 021-2.1.3.

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Schedule for Stakeholder Review

• May 28, 2013 TC Meeting – ISO-NE’s initial presentation of revision to Schedule 24 to comply with Order No. 676-G

• Next TC Meeting – ISO-NE’s second presentation of revision to Schedule 24, and TC action

• July 2013 PC Meeting – PC action on Schedule 24 revision

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Contact Information

Eric Winkler, Ph.D.Resource Analysis and AdministrationISO New EnglandEmail: ewinkler@iso-ne.com

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