RIN Data

The Commission revised its regulations to address incremental energy offer caps. We required that each regional transmission organization (RTO) and independent system operator (ISO): Cap each resource’s incremental energy offer at the higher of $1,000/megawatt-hour (MWh) or that resource’s verified cost-based incremental energy offer; and cap verified cost-based incremental energy offers at $2,000/MWh when calculating locational marginal prices (LMP). Further, the Commission clarified that the verification process for cost-based incremental offers above $1,000/MWh should ensure that a resource’s cost-based incremental energy offer reasonably reflects that resource’s actual or expected costs. The Commission also stated that the Final Rule will improve price formation by reducing the likelihood that offer caps will suppress LMPs below the marginal cost of production, while compensating resources for the costs they incur to serve load, by enabling RTOs/ISOs to dispatch the most efficient set of resources when short-run marginal costs exceed $1,000/MWh, by encouraging resources to offer supply to the market when it is most needed, and by reducing the potential for seams issues (Docket No. RM16-5-000).