A Load Serving Entity (LSE) can designate its Zonal Resource Credits (ZRCs) in a Fixed Resource Adequacy Plan (FRAP) up to the LSE’s Planning Reserve Margin Requirement (PRMR). The ZRCs used in a FRAP will be deducted from the available ZRC balance of Planning Resources in the Module E Capacity Tracking (MECT) tool. Any portion of an LSE’s PRMR not covered by the FRAP or met through paying the Capacity Deficiency Charge will be cleared in the Planning Resource Auction (PRA).
An LSE submitting a FRAP may be subject to a Zonal Deliverability Charge (ZDC). The ZDC is the difference between the Auction Clearing Price (ACP) in the Local Resource Zone (LRZ) where the LSE has PRMR obligation and the ACP in the LRZ or External Resource Zone (ERZ) where the ZRC associated with the FRAP is physically located multiplied by the volume of the FRAP. An LSE can obtain a ZDC Hedge as a hedge against zonal price differences.
ZRCs and PRMR included in a FRAP will be modeled in the PRA.
REFERENCE
BPM 11 Resource Adequacy
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