FERC Approves CAISO Proposal On Generating Unit Black Start Capabilities

On October 20, 2017, FERC approved the California Independent System Operator Corporation's ("CAISO") proposal to revise tariff language as it relates to the procurement and cost allocation of black start capability.  Under the proposed changes, black start capability will be redefined as a reliability service instead of an ancillary service, with costs for black start services to be allocated to the participating transmission owner in the service area the resource is located.  The revisions will go into effect on November 1, 2017.

In 2011, FERC issued Order No. 749, which approved Reliability Standard EOP-005-2 ("Reliability Standard") requiring transmission operators to have a system restoration plan in place in the event of a power or system outage.  The Reliability Standard also provides for periodic testing of the resources and states that each operator should have testing requirements in place to make sure those resources are adequately functioning.