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.
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 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 cost in any hour, the NCPC payment is the difference between the energy cost and the bid cost, subject to certain eligibility requirements.
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.
Note: Coordinated external transactions are not eligible for day-ahead NCPC credits or charges.
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 Day-Ahead market, will receive credits.
Charges for day-ahead NCPC are allocated based on NCPC category. The NCPC categories are determined by the reason for the resource commitment:
Charges are allocated to market participants based on day-ahead load obligation.
Charges are allocated to market participants based on day-ahead load obligation.
Charges are allocated to market participants based on day-ahead load obligation less dispatchable ARD load obligation.
Charges are allocated to market participants based on real-time load obligation for the applicable reliability region.
Charges are allocated to market participants based on network load and OASIS reservations.
Charges are allocated to market participants based on network load for the applicable reliability region.
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.
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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.
For information on bid-block or bid-slope supply offer methods for the NCPC calculations, please see the FAQs.
BL_DAILYPOSITION—Daily financial position, including all market service settlements and miscellaneous billing adjustments generated daily, issued to all active customers
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
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
SR_DANCPCSTLMNTSUM—Summary of a participant’s daily day-ahead NCPC charges and credits, issued upon settlement of the market day
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.
