Entries in fuel security (7)


“Pay-for-performance” capacity market incentives implemented as of June 1, 2018

“Pay-for-performance” (PFP)—a cornerstone of ISO New England’s ongoing, multi-faceted effort to address trends that are challenging power system reliability—became effective on June 1, 2018. PFP is part of New England’s Forward Capacity Market (FCM) design, which acquires obligations from resources needed to meet demand three years into the future. The new PFP rules provide enhanced incentives, in a carrot-and-stick approach, for resource owners to ensure their resources are ready and able to meet their obligations to provide energy and reserves or reduce demand during times of stress on the regional power system. Now, resources with a capacity obligation can be penalized $2,000 per megawatt-hour (MWh) for failing to meet their obligation during energy shortfalls, while resources that over-perform relative to their obligation (including resources with no obligation) can receive $2,000/MWh of additional revenue. This performance payment rate is scheduled to increase to $5,455/MWh over the next six years.

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ISO-NE CEO keynotes New England Council’s regional energy forum

On April 27, ISO-NE’s president and CEO Gordon van Welie provided the keynote address to more than 130 people attending the New England Council’s (NEC) Regional Energy Forum at St. Anselm College’s New Hampshire Institute of Politics. van Welie covered the region’s changing energy landscape and discussed how fuel security, especially in the winter, poses power grid reliability risks.

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ISO, FERC discuss grid resiliency at roundtable in Boston

On March 16, 2018, ISO New England President and CEO Gordon van Welie delivered a keynote address at the New England Electricity Restructuring Roundtable on the region's growing fuel security risk. FERC Commissioner Robert Powelson also gave a keynote on grid resiliency, touching on the Commission's Resilience Order.

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ISO-NE responds to FERC's grid resilience order

ISO New England has filed its response to the January 8, 2018, Federal Energy Regulatory Commission Resilience Order.  The ISO’s response focuses on the most significant challenge for the New England bulk power system’s resilience – fuel security– or the assurance that power plants will have or be able to obtain the fuel they need to run during winter as coal, oil, and nuclear units retire, fuel infrastructure is constrained, and permits to operating dual-fuel generating capability remain difficult to obtain. The ISO  is  already  at  the  forefront  of  this  issue, having issued its Operational Fuel Security Analysis in January. In its March 9 response, the ISO requests the Commission afford the ISO time to work with regional stakeholders to develop a long-term solution to the fuel-security challenges. The response, however, indicates that, should circumstances dictate, the ISO will take the necessary actions to address near-term reliability risks. These topics are also covered in the ISO’s 2018 Regional Electricity Outlook.


Power grid solutions needed: Worcester Business Journal publishes opinion piece by ISO-NE CEO

An opinion piece by Gordon van Welie, president and CEO of ISO New England, appeared in the February 5 edition of the Worcester Business Journal. “Power grid solutions needed to avoid blackouts” discussed how New England’s power system managed during the recent cold snap, which saw bitter cold temperatures coupled with snowstorms. Though the ISO managed the power system reliably, the conditions drove up wholesale electricity prices, left the region at risk if a major power plant or transmission line went down, and highlighted a growing concern regarding fuel security. In the oped, van Welie discusses the ISO’s recently-released Operational Fuel-Security Analysis, which quantifies the risks posed to the regional grid when natural gas power plants – which produce nearly half of the electricity in New England – have difficulty accessing fuel.


ISO-NE CEO testifies before Senate Energy Committee; highlights cold weather operations and ISO’s Operational Fuel Security Analysis

On January 23, ISO New England President & CEO Gordon van Welie testified before the Senate Committee on Energy & Natural Resources (ENR) to discuss bulk power system operations during the recent cold weather period and the ISO’s Operational Fuel-Security Analysis.

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