Day-Ahead (DA) Net Commitment Period Compensation

Day-Ahead NCPC

What Is Day-Ahead NCPC?

Net Commitment-Period Compensation (NCPC) is the payment to a generator, demand-response resource (DRR), or dispatchable-asset-related demand (DARD) that did not recover its effective offer from the energy market during an operating day. The day-ahead NCPC evaluation is performed for generators, DRRs, and DARDs cleared in the Day-Ahead Energy Market.

Special-Case Day-Ahead NCPC

Day-Ahead External-Transaction Import and Increment Offer NCPC—Pool-scheduled imports and increment offers at external nodes are evaluated for NCPC credits in each hour. If the offer cost is greater than the day-ahead energy revenue in any hour, the NCPC payment is the difference between the offer and revenue, subject to certain eligibility requirements.

Day-Ahead External-Transaction Export and Decrement Bid NCPC—Pool-scheduled exports and decrement bids at external nodes are evaluated for NCPC credits in each hour. If the bid cost is less than the day-ahead energy cost in any hour, the NCPC payment is the difference between the energy cost and the bid cost, subject to certain eligibility requirements.

What Document(s) Contain Details about the Day-Ahead Energy Market NCPC?

Primary provisions for the settlement of the Day-Ahead Energy Market NCPC are included in Market Rule 1, Appendix F, and the Open Access Transmission Tariff, Schedule 2.

Who Incurs a Day-Ahead NCPC Credit or Charge?

Note: Coordinated external transactions are not eligible for day-ahead NCPC credits or charges.

Credits

Market participants with an ownership share in one or more generator, DRR, DARD, or external transaction cleared by the ISO in the Day-Ahead Energy Market, which did not recover its offer costs from the energy market, will receive credits.

Charges

Charges for day-ahead NCPC are allocated based on NCPC category. The NCPC categories are determined by the reason for the resource commitment:

Economic NCPC

Charges are allocated to market participants based on day-ahead load obligation.

Economic NCPC (Generators & Demand Response Resource)

Charges are allocated to market participants based on day-ahead load obligation.

Economic NCPC (Dispatchable ARD)

Charges are allocated to market participants based on day-ahead load obligation less dispatchable ARD load obligation.

Local Second-Contingency Protection Resource (LSCPR) NCPC

Charges are allocated to market participants based on real-time load obligation for the applicable reliability region.

VAR NCPC

Charges are allocated to market participants based on network load and OASIS reservations.

Regional High Voltage VAR

Charges are allocated to market participants based on network load for the applicable reliability region.

Day-Ahead External Transaction NCPC

Charges for imports are allocated to market participants based on day-ahead load obligation at the applicable external node. Charges for exports are allocated to market participants based on day-ahead generation obligation at the applicable external node.

See FAQs for additional information on day-ahead external transaction NCPC cost allocation.

Related Standard Settlements

N/A

Related Billing Adjustments

N/A

Bill Detail

The hourly services bill display contains a single line item netting charges and credits entitled “Day-Ahead NCPC.” Economic, LSCPR, and external transaction NCPC charges and credits are included in the hourly services bill. The monthly bill contains a single line item netting charges and credits entitled “OATT Schedule 2 VAR.” This line item includes VAR NCPC and regional high-voltage VAR NCPC charges and credits, as well as charges and credits associated with other VAR service as described in OATT-Schedule 2 VAR.

Other

For information on bid-block or bid-slope supply offer methods for the NCPC calculations, please see the FAQs.

Reports

Daily Financial Position Report

BL_DAILYPOSITION—Daily financial position, including all market service settlements and miscellaneous billing adjustments generated daily, issued to all active customers

Day-Ahead NCPC Payment Report

SD_DANCPCPYMT—Hourly detail of a participant’s credits by asset and external transaction and a summary of payments, issued upon settlement of the market day

Day-Ahead Commitment and Dispatch Reports

SD_DANCPCGEN—Hourly detail of a participant’s generating asset operating data, issued upon settlement of the market day

SD_DANCPCDARD—Hourly detail of a participant’s DARD commitment data, issued upon settlement of the market day

SD_DANCPCDRR—Hourly detail of a participant’s demand-response resource operating data, issued upon settlement of the market day

Day-Ahead NCPC Settlement Summary Report

SR_DANCPCSTLMNTSUM—Summary of a participant’s daily day-ahead NCPC charges and credits, issued upon settlement of the market day

  • Total charges for non-VAR NCPC categories are shown.
  • Total credits are shown by non-VAR and VAR charge categories.
  • All credits and charges associated with resources flagged for a non-VAR commitment reason are in the twice-weekly bill.
  • Credits paid to resources flagged for a VAR commitment reason are included in the monthly bill issued two months after the operating month.
  • The charges (and credits) for these resources are reported in the SD_VARVCCHG and SR_VARSTL reports. See OATT-Schedule 2 VAR for more information.

FERC EQR

Day-ahead NCPC is reported on the SP_EQR report, available monthly one month after the given settlement, as referenced in the line item prefaced with the title “NCPC – Day Ahead” in ISO-NE Settlements to FERC EQR Product Mapping.

Related Calculation Summary

DA NCPC Calculation Summary