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The objectives are:
Capacity clearing price collar (Section 13.2.7.3 of Market Rule 1) is in effect until three successful FCAs have been conducted in the Rest-of-Pool Capacity Zone, but in no case for more than the first five FCA's.
If the third FCA is successful and new capacity sets the clearing price, then:
CONE FCA t = (0.70 x CONE FCA t-1 + 0.30 * Capacity Clearing Price in year t); otherwise CONE FCA t = CONE FCA t-1
"New Capacity" is a resource that has never been "listed" as a capacity resource in the New England Capacity Markets.
The qualification process is:
Forward Capacity Auction (FCA) calendars are available and always current on this Web site. Microsoft Outlook can be used to import and overlay the FCA calendars with your individual calendar. Instructions are available on the same pages as the calendars under "Related Information." Formally, the calendars are listed in Market Rule 1, Section 13.1.10.
The qualifiation package needs to include:
See Market Rule 1 Section 13.1.10 and other presentation for submitting qualification packages for new capacity.
Offers below 0.75 * CONE must be submitted by a resource in order to remain in the FCA.
If no offer below 0.75 CONE is submitted as part of the new capacity qualification package the New Resource is removed from the FCA if/when the price falls below 0.75 * CONE
Offers below 0.75 * CONE are subject to review by the Market Monitoring Unit (MKT Rule iii.13.1.1.2.6).
A new capacity resource that goes through the FCM qualification and auction process but does not clear in an FCA or a related reconfiguration auction, and does not otherwise have or acquire a capacity obligation through a Bi-lateral Contract, will not receive any revenue for that Commitment Period and will maintain its "new" status for the next FCA.
A new capacity resource that decides not to participate in the FCM qualification and auction process, and proceeds to build or install its new capacity resource anyway, may participate in an FCA following its commercial date as a new resource by submitting a Show of Interest application along with the other qualification requirements for New Capacity and would be subject to an overlapping impact review. The amount of capacity clearing in the FCA from this resource would be treated as existing capacity in subsequent FCAs. This resource will not receive revenue for its capacity during the period between its commercial operation date and the FCA Commitment Period for which it received an obligation, assuming its commercial operation date is outside of the FCM Transition Period (unless the resource qualifies for and clears in a reconfiguration auction or acquires an obligation thru a Bi-lateral Contract).
A new capacity resource that clears in the first FCA and becomes commercial before June 1, 2010 will receive FCM Transition Payments through May 31, 2010. This resource will also retain its multi-year commitment period if this option was elected as part of the resource's New Capacity Qualification Package as a result of qualifying as a new resource in the first FCA.
ISO-NE will seek to procure in each Forward Capacity Auction (FCA) 100 percent of New England's Installed Capacity Requirement (ICR) for the power year (defined as June 1 to May 31) beginning approximately three years later based on the FERC approved ICR projection for that future year.
If cleared, an existing capacity resource will have a one-year commitment for the power year for which the Forward Capacity Auction (FCA) is being held (commitment period. A new capacity resource can choose a commitment period of up to five years, in one-year increments. Capacity resources are mapped to and paid the clearing price in the capacity zone in which they are electrically interconnected.
After each obligation month, load will pay a blended regional clearing price based on megawatts weighted prices paid to capacity resources clearing in the FCA, all subsequent Reconfiguration Auctions as applicable, Capacity Supply Obligations, Bilaterals, HQICC's used in the calculation of ICR, adjustments for peak energy rent (PER), and less any forfeited financial assurance.
Capacity zones are defined before each FCA. ISO-NE will determine and file capacity zones at least 90 days before the date of the FCA with the FERC, consistent with the Installed Capacity Requirement (ICR) filing. This information will be available earlier as part of the stakeholder process for developing ICR.
An import-constrained capacity zone will exist in the FCA if, for the commitment period, the forecasted capacity requirement in the capacity zone (existing + new + imports accepted in prior FCAs) minus permanent delist bids and export bids accepted in prior FCAs is less than the forecasted Local Sourcing Requirement (LSR). The LSR is the portion of the total capacity requirement of the load in a capacity zone that must be purchased from capacity resources located within that zone after taking into account all of the capacity that can be reliably imported into that zone.
An export-constrained capacity zone is a capacity zone that cannot export to other capacity zones all of the capacity available in that zone due to transmission transfer constraints. Export-constrained zones are always modeled in the Forward Capacity Auction (FCA).
Section 13.2.7.3. of Market Rule 1 is in effect until three successful FCAs have been conducted in the Rest-of-Pool Capacity Zone, but in no case for more than the first five FCAs.
CTRs are financial rights given to entitlement holders of specific generating units that have been grandfathered in the FCM and to Load Serving Entities within Import Constrained Capacity Zones. In the case of the specific generating units it is a right of the owner of that asset to be paid the clearing price of the capacity zone where the asset is located if their load is in an import-constrained zone. CTRs are only settled in the FCM and cannot be traded. Load that wants to self-supply using one of these grandfathered generating assets may use its CTR to be held financially neutral.
If a new capacity resource is located in an import-constrained zone, and chooses a long-term obligation after it clears in a Forward Capacity Auction (FCA), the cost of that new capacity resource is allocated to the load in the import-constrained zone. Assuming, prior to the next FCA, that the import-constrained zone is no longer constrained and does not experience price separation in that FCA, the cost of that new capacity resource will be allocated to the Rest-of-Pool Capacity Zone.
A new capacity resource must select the length of its commitment obligation at the time it submits its qualification package.
