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Deployed Supplemental Reserves (MW)

Share of Cleared MW Called for Deployment

Figure 36: Non-Responsive Supplemental Reserve Deployments 2009

1,000

100%

900

MW Deployed But Not Responding in 30 minutes

90%

800

Deployed MW Responding in 30 min

80%

700

Deployed MW Responding in 10 min

70%

600

Share of Called MW not Responding

60%

500

50%

400

40%

300

30%

200

20%

100

10%

2009 State of the Market Report

Market Performance

prices. We recommend that the Midwest ISO discontinue its relaxation practice and set prices based on the penalty price during shortages.

The Midwest ISO began directly deploying supplemental reserves during Disturbance Control Standard (“DCS”) and ARS events in 2009. There were nine such deployments in 2009. Figure 36 shows the response of the supplemental reserves deployed, separately indicating those that were successfully deployed within 10 minutes (as required) and within 30 minutes.

0

0%

Jan 17 Mar 23

Jun 21

Jun 22

Jun 26

Jul 30

Sep 12 Sep 26

Sep 30

The response of units deployed for supplemental reserves was poor in 2009. Only 39 percent of reserves were successfully deployed within 10 minutes during the nine events, and an additional 32 percent were deployed within 30 minutes. Hence, almost 30 percent of the reserves did not respond within 30 minutes – this share was even higher during the events that required the largest deployments. Poor performance can significantly degrade reliability and raises concerns that suppliers may be selling reserves that they are knowingly incapable of deploying.

In response to this poor deployment performance, the Midwest ISO has proposed Tariff changes to add additional testing and verification requirements for offline supplemental reserves.

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