How does SMD impact operating reserves?
The ISO compensates generators who provide operating reserves based on their submitted costs for providing energy, including start-up and no-load costs. This operating reserve compensation ensures that generators providing reserves are made whole of any expenses not recovered through the daily sum of energy payments. Special provisions provide lost opportunity compensation to generators whose output is constrained for the purposes of providing operating reserve. Operating reserves charges in the day-ahead market are levied upon participants proportionate to their day-ahead market load obligations. In the real-time market, charges are levied upon participants whose real-time load deviates from the day-ahead schedule and/or whose generators deviate from day-ahead schedules and do not follow real-time dispatch instructions. Market participants should take potential revenues and costs from operating reserve credits and charges into consideration when participating in both the day-ahead and
