Common use of Determination of Transmission Shortage Cost Clause in Contracts

Determination of Transmission Shortage Cost. The applicable Transmission Shortage Cost depends on whether a particular transmission Constraint is associated with a transmission facility or Interface that includes a non-zero constraint reliability margin value. The ISO shall establish constraint reliability margin values for transmission facilities and Interfaces. Non-zero constraint reliability margin values established by the ISO shall be equal to or greater than 20 MW. For transmission facilities and Interfaces with a non-zero constraint reliability margin value, SCUC, RTC and RTD shall include consideration of a two step demand curve consisting of up to an additional 5 MW of available resource capacity at a cost of $350/MWh and up to an additional 15 MW of available resource capacity at a cost of $1,175/MWh when evaluating transmission Constraints associated with such facilities and Interfaces. In no event, however, shall the Shadow Price for such transmission Constraints exceed $4,000/MWh. For transmission facilities and Interfaces with a constraint reliability margin value of zero, the Shadow Price for transmission Constraints associated with such facilities and Interfaces shall not exceed $4,000/MWh. SCUC, RTC and RTD shall not include consideration of the available resource capacity provided by the two step demand curve described above for such transmission Constraints.