With the US Supreme Court’s January 25 opinion on FERC v EPSA, New England now has a clear path forward for enabling demand-response resources to participate fully in the region’s wholesale electricity marketplace. The court opinion affirmed the ability of the Federal Energy Regulatory Commission (FERC) to establish rules for demand response—a matter that had been in question since May 2014 when the DC Circuit of the US Court of Appeals ruled that FERC did not have this jurisdiction. The ISO can now continue with its plans, which had been delayed by a year due to the legal challenges, to create opportunities and obligations comparable to those of generators for demand response to participate in wholesale electricity markets.
Entries in market development (16)
Two major ISO-NE projects go live: Coordinated Transaction Scheduling (CTS) and Generation Control Application (GCA)
As 2015 draws to a close, ISO New England has completed the implementation of two capital projects that improve scheduling of wholesale electricity sales between neighboring regions and enhance the commitment and dispatch of fast-start generators, thereby helping to reduce wholesale costs in both regions. The Coordinated Transaction Scheduling (CTS) Project went live December 15 (see the press release), while the Generation Control Application (GCA) Project, a prerequisite for CTS, went live November 10.
Coordinated Transaction Scheduling Expected to Reduce Wholesale Electricity Costs
The New York Independent System Operator (NYISO) and ISO New England have implemented a new interregional market system that will streamline electric energy transactions and improve the flow of power between the two markets. Introduced on December 15, Coordinated Transaction Scheduling (CTS) makes more efficient use of the transmission lines by enabling market participants to access the lowest-cost source of power between the two regions.
ISO-NE issues white paper on potential approaches to demand resources in markets pending possible legal and regulatory outcomes
On April 17, ISO New England released the white paper Contingency Plan Addressing the Potential Loss of FERC Jurisdiction Over Demand Resources. It details possibilities for continued demand resource participation in New England, in response to uncertainty surrounding FERC Order No. 745, Demand Response Compensation in Organized Wholesale Energy Markets.
Order No. 745 was vacated in a May 2014 decision by the US Court of Appeals for the District of Columbia Circuit in Electric Power Supply Association v. FERC. An appeal was filed, and on May 4, 2015, the US Supreme Court agreed to review the decision. The Supreme Court's decision is expected by end of June 2016.
ISO-NE CEO visits NECN to discuss natural gas dependency, other challenges affecting the regional grid
The New England Cable News (NECN) station welcomed Gordon van Welie, president and CEO of ISO New England, on June 10, to be a guest on their show “CEO Corner,” hosted by business editor Peter Howe.
Revised ORTPs went into effect May 13
On May 12, 2014, the Federal Energy Regulatory Commission (FERC) approved several revisions ISO New England proposed to offer review trigger prices (ORTPs) in the Forward Capacity Market (FCM). The new ORTPs are effective May 13, 2014, to ensure that market participants preparing qualification packages for the ninth Forward Capacity Auction (FCA #9) have certainty regarding the applicable ORTPs in advance of the June 17, 2014, qualification deadline.