Facility Tests

The IMO is required to verify and test the operation of facilities holding Capacity Credits to ensure that each facility remains capable of satisfying its Reserve Capacity Obligations. The IMO must verify the operation of each generation facility at least twice a year, and each Curtailable Load once a year, within specified time periods, but may also conduct additional verifications as required. Verification must be conducted for each type of fuel for which the facility was certified.

In order to avoid unnecessary costs for Market Participants, verification can be achieved through observation of normal operations if the facility has operated at the required test level for at least one half-hour Trading Interval. Each Market Participant can confirm whether its facilities have already satisfied this verification requirement in the RC Testing screen of the WEMS (Wholesale Electricity Market System).

If a facility has not operated at the required test level during the relevant testing period, the IMO will request System Management to test the facility to confirm its ability to operate at the required level for two consecutive half-hour Trading Intervals. If a facility fails this test, System Management will re-test the facility between 14 and 28 days after the first test. If the facility fails this second test, the Capacity Credits for the facility will be reduced to the maximum capability demonstrated during the two tests. If this occurs, the Market Participant may request one subsequent re-test of the facility, with the Capacity Credits either reinstated or set at the level achieved in the re-test.

The Reserve Capacity Testing process is guided by the Market Procedure for: Reserve Capacity Testing.

Verification Tests for Curtailable Loads

In addition to the facility test above, a Verification Test must be performed for each Curtailable Load either:

• within 20 days of registration of the Curtailable Load; or
• between 1 October and 30 November each year.

The Verification Test requires that each Curtailable Load demonstrate a reduction in demand of at least 10% of the Capacity Credits assigned to that Load.

The Market Participant schedules the Verification Test by activating the Curtailable Load and notifying the IMO of the Trading Intervals in which the test was conducted. Where the Verification Test is failed, the IMO must reduce the Capacity Credits to zero for that Curtailable Load. The Market Participant may request a second Verification Test in order to reinstate the Capacity Credits.

Verification and Testing of Facilities

In accordance with Market Rule 10.5.1(f)(viii), the IMO must publish three-monthly reports of the Reserve Capacity Tests performed and any tests delayed by System Management.

Reports for 2010 and 2011 are provided below. Earlier reports are provided in the Reserve Capacity Testing Archive.