Sec. 1110. Reliability and performance assurance in Regional Transmission Organizations
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Part II of the Federal Power Act ( 16 U.S.C. 824 et seq. ), as amended by section 1104, is further amended by adding after section 215A the following new section: Not later than 180 days after the date of enactment of this section, each Regional Transmission Organization, and each Independent System Operator, that operates a capacity market, or a comparable market intended to ensure the procurement and availability of sufficient future electric energy resources, that is subject to the jurisdiction of the Commission, shall provide to the Commission an analysis of how the structure of such market meets the following criteria:
The structure of such market utilizes competitive market forces to the extent practicable in procuring capacity resources. Consistent with subparagraph (A), the structure of such market includes resource-neutral performance criteria that ensure the procurement of sufficient capacity from physical generation facilities that have reliability attributes that include— possession of adequate fuel on-site to enable operation for an extended period of time; the operational ability to generate electric energy from more than one fuel source; or fuel certainty, through firm contractual obligations, that ensures adequate fuel supply to enable operation, for an extended period of time, for the duration of an emergency or severe weather conditions; operational characteristics that enable the generation of electric energy for the duration of an emergency or severe weather conditions; and unless procured through other markets or procurement mechanisms, essential reliability services, including frequency support and regulation services.
Not later than 1 year after the date of enactment of this section, the Commission shall make publicly available, and submit to the Committee on Energy and Commerce in the House of Representatives and the Committee on Energy and Natural Resources in the Senate, a report containing— evaluation of whether the structure of each market addressed in an analysis submitted pursuant to paragraph
(1)meets the criteria under such paragraph, based on the analysis; and to the extent a market so addressed does not meet such criteria, any recommendations with respect to the procurement of sufficient capacity, as described in paragraph (1)(B). Except as provided in subsection (a)(2), whenever a Regional Transmission Organization or Independent System Operator files a new schedule under section 205 to establish a market described in subsection (a)(1), or that substantially modifies the capacity market design of a market described in subsection (a)(1), the Regional Transmission Organization or Independent System Operator shall include in any such filing the analysis required by subsection (a)(1). Not later than 180 days of receiving an analysis under paragraph (1), the Commission shall make publicly available, and submit to the Committee on Energy and Commerce in the House of Representatives and the Committee on Energy and Natural Resources in the Senate, a report containing— an evaluation of whether the structure of the market addressed in the analysis meets the criteria under subsection (a)(1), based on the analysis; and to the extent the market does not meet such criteria, any recommendations with respect to the procurement of sufficient capacity, as described in subsection (a)(1)(B). Nothing in this section shall be considered to— require a modification of the Commission’s approval of the capacity market design approved pursuant to docket numbers ER15–623–000, EL15–29–000, EL14–52–000, and ER14–2419–000; or provide grounds for the Commission to grant rehearing or otherwise modify orders issued in those dockets. .
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Sec. 1110
Reliability and performance assurance in Regional Transmission Organizations
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