This week the operator of New England's wholesale electricity markets made a series of filings with its federal regulator providing information on its upcoming thirteenth forward capacity auction, through which electric generators may commit to providing electric capacity during the period from June 1, 2022 through May 31, 2023.
ISO New England Inc. is the independent system operator and wholesale market-maker for most of New England's electricity grid. It is a private, not-for-profit entity, which operates pursuant to a tariff on file with the Federal Energy Regulatory Commission. As part of its planning for system operations, ISO-NE operates a forward capacity market through which it conducts annual auctions through which qualified generators and other resources may bid to obtain commitments to provide capacity in a future year, in exchange for which resources will be compensated. The next primary auction for capacity supply obligations will be Forward Capacity Auction 13 (or FCA 13), which will be held beginning on February 4, 2019, and will cover the 2022-2023 capacity commitment period.
In advance of each primary auction, ISO-NE calculates an "Installed Capacity Requirement," which it defines as a measure of the installed resources that are
projected to be necessary to meet reliability standards in light of total forecasted load
requirements for the New England Control Area and to maintain sufficient reserve capacity to
meet reliability standards. In computing the Installed Capacity Requirement, the grid operator considers parameters and assumptions including load forecast, resource capacity ratings, and resource availability. It also considers what relief
can be obtained during a capacity deficiency through measures including emergency assistance (tie benefits) from neighboring interconnected regions (New Brunswick, New York, and Quebec), load reduction by reducing system voltage by 5%, and running the system at a minimal level of operating reserve.
In its November 6 Installed Capacity Requirement filing, the grid operator told the Commission that it proposed a installed capacity requirement for FCA 13 of 33,750 megawatts, after taking into account 969 megawatts of credits over interconnection with Canadian utility Hydro-Quebec.
In a parallel Informational Filing for qualification in FCA 13, the grid operator noted that 31,432 megawatts of existing generating capacity resources qualified for the 2022-2023 capacity commitment period, as did 80 megawatts of existing import capacity resources, and 3,413 megawatts of existing demand capacity resources, totaling 34,925 megawatts of existing capacity. Some resources submitted bids to retire, and 3,223 megawatts of resources submitted bids to withdraw in part or in whole from the auction if it clears below a defined price. Additionally, ISO-NE qualified 238 new capacity resources, totaling 8,716 megawatts.
ISO-NE will conduct its thirteenth forward capacity auction starting on February 4, 2019.
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Showing posts with label ICR. Show all posts
Showing posts with label ICR. Show all posts
ISO-NE files IRC-related values for 2019-2020
Thursday, November 19, 2015
In advance of an upcoming auction to sell electric generating capacity into the New England market, regional grid operator ISO New England Inc. has submitted key information about its plans to the Federal Energy Regulatory Commission.
ISO New England is the private, non-profit entity that serves as the regional transmission organization for New England. In this role, ISO-NE plans and operates the New England bulk power system, administers New England’s organized wholesale electricity market, and has some responsibility over system reliability. Reliability can be stated in terms of a loss of load expectation or “LOLE”, which measures how often non-interruptible customers are disconnected.
New England has adopted a capacity market as part of its wholesale electricity market structure. One aspect of system reliability is ensuring sufficient generating capacity is available to meet consumer demand. Pursuant to Section III.13 of the Tariff, the ISO administers periodic Forward Capacity Auctions, or FCAs, in order “to procure the amount of capacity needed in the New England Control Area.”
ISO-NE will hold its tenth Forward Capacity Auction in February 2016, covering the 2019-2020 Capacity Commitment Period. To do so, ISO-NE must first identify how much generation will be needed to meet reliability standards in light of total forecasted load requirements for the New England Control Area and to maintain sufficient reserve capacity to meet reliability standards. One key value characterizing this need is the "Installed Capacity Requirement" or ICR. ICR refers to the amount of resources needed to meet the reliability requirements defined for the New England Control Area of disconnecting non-interruptible customers no more than once every ten years. Under Section 205 of the Federal Power Act, ISO-NE files with the FERC proposed ICR-Related Values for the each auction.
On November 10, 2015, ISO New England submitted to the FERC its Installed Capacity Requirement, Local Sourcing Requirement for the Southeastern New England Capacity Zone, Hydro Quebec Interconnection Capability Credits, and Demand Curve Values for the 2019-2020 Capacity Commitment Period. In that filing, ISO-NE proposed an Installed Capacity Requirement (net of certain credits for imports) of 34,151 MW.
ISO-NE noted that for the most part, this and other key values were calculated using the same Commission-approved methodology that has been used to calculate the values submitted and accepted for other recent Capacity Commitment Periods. One key difference for the tenth FCA is the inclusion of behind-the-meter photovoltaic (“PV”) resources that are not yet reflected in historical loads as a reduction in the load forecast. This change addresses a requirement imposed by the FERC in its January 2, 2015 Order accepting the Installed Capacity Requirement and related values for the ninth FCA.
ISO-NE asked FERC to accept the proposed ICR-Related Values for the tenth FCA to be effective on January 9, 2016 (i.e. 60 days after filing), to enable their use in the tenth FCA scheduled for February 2016.
ISO New England is the private, non-profit entity that serves as the regional transmission organization for New England. In this role, ISO-NE plans and operates the New England bulk power system, administers New England’s organized wholesale electricity market, and has some responsibility over system reliability. Reliability can be stated in terms of a loss of load expectation or “LOLE”, which measures how often non-interruptible customers are disconnected.
New England has adopted a capacity market as part of its wholesale electricity market structure. One aspect of system reliability is ensuring sufficient generating capacity is available to meet consumer demand. Pursuant to Section III.13 of the Tariff, the ISO administers periodic Forward Capacity Auctions, or FCAs, in order “to procure the amount of capacity needed in the New England Control Area.”
ISO-NE will hold its tenth Forward Capacity Auction in February 2016, covering the 2019-2020 Capacity Commitment Period. To do so, ISO-NE must first identify how much generation will be needed to meet reliability standards in light of total forecasted load requirements for the New England Control Area and to maintain sufficient reserve capacity to meet reliability standards. One key value characterizing this need is the "Installed Capacity Requirement" or ICR. ICR refers to the amount of resources needed to meet the reliability requirements defined for the New England Control Area of disconnecting non-interruptible customers no more than once every ten years. Under Section 205 of the Federal Power Act, ISO-NE files with the FERC proposed ICR-Related Values for the each auction.
On November 10, 2015, ISO New England submitted to the FERC its Installed Capacity Requirement, Local Sourcing Requirement for the Southeastern New England Capacity Zone, Hydro Quebec Interconnection Capability Credits, and Demand Curve Values for the 2019-2020 Capacity Commitment Period. In that filing, ISO-NE proposed an Installed Capacity Requirement (net of certain credits for imports) of 34,151 MW.
ISO-NE noted that for the most part, this and other key values were calculated using the same Commission-approved methodology that has been used to calculate the values submitted and accepted for other recent Capacity Commitment Periods. One key difference for the tenth FCA is the inclusion of behind-the-meter photovoltaic (“PV”) resources that are not yet reflected in historical loads as a reduction in the load forecast. This change addresses a requirement imposed by the FERC in its January 2, 2015 Order accepting the Installed Capacity Requirement and related values for the ninth FCA.
ISO-NE asked FERC to accept the proposed ICR-Related Values for the tenth FCA to be effective on January 9, 2016 (i.e. 60 days after filing), to enable their use in the tenth FCA scheduled for February 2016.
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