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1、138FERC¶61,123UNITEDSTATESOFAMERICAFEDERALENERGYREGULATORYCOMMISSIONBeforeCommissioners:JonWellinghoff,Chairman;PhilipD.Moeller,JohnR.Norris,andCherylA.LaFleur.FrequencyRegulationCompensationintheOrganizedDocketNos.RM11-7-001WholesalePowerMarketsAD10-11-001ORDERNO.755-AORDERDENYINGREHEARING
2、(IssuedFebruary16,2012)1.ThisorderaddressesSouthernCaliforniaEdisonCompany’s(SoCalEdison)1requestforrehearingofOrderNo.755.OrderNo.755revisedtheCommission’sregulationstorequireatwo-partpayment,includingbothacapacityandaperformancepayment,forfrequencyregulationserviceprovidedinorganizedwhole
3、saleelectricmarkets,inordertoensurejustandreasonableandnotundulydiscriminatoryorpreferentialfrequencyregulationrates.I.Introduction2.OnOctober20,2011,theCommissionissuedOrderNo.755,requiringregionaltransmissionorganizations(RTO)andindependentsystemoperators(ISO)tocompensatefrequencyregulati
4、onresourcesbasedontheactualamountoffrequencyregulationserviceprovidedinrespondingtoatransmissionsystemoperator’sautomaticgeneratorcontrol(AGC)signalforpurposesofrespondingtoactualoranticipatedfrequencydeviationsorinterchangepowerimbalances.Specifically,OrderNo.755directsRTOsandISOstoimpleme
5、ntatwo-partpaymentforfrequencyregulationservice,including:(1)acapacitypaymentthatincludesthemarginalunit’sopportunitycosts;and(2)apaymentforperformancethatreflectsthequantityoffrequencyregulationserviceprovidedbyaresourcewhentheresourceisaccuratelyfollowingthedispatchsignal.1FrequencyRegula
6、tionCompensationintheOrganizedWholesalePowerMarkets,OrderNo.755,76FR.67260(Oct.31,2011),FERCStats.&Regs.¶31,324(2011).DocketNos.RM11-7-001andAD10-11-001-2-3.TheCommissionissuedOrderNo.755baseduponitsfindingthatcurrentrulesinRTOandISOtariffswhichgovernpricingandcompensationforfrequencyregula
7、tionservicesintheRTOandISOmarketsareunjustandunreasonable,andundulydiscriminatoryorpreferential,becausetheycompensateresourcesatthesamelevel2regardlessofthedifferentamountsoffrequencyregulationserviceprovided.TheCommissiondeterminedthatcompensatingresour
