Entries in wholesale markets (29)

Thursday
May172018

ISO-NE’s wholesale electricity and capacity markets were competitive in 2017

The 2017 Annual Markets Report, issued by the Internal Market Monitor at ISO New England, concluded that the region’s wholesale power markets were competitive in 2017. The report notes that the total cost of wholesale electricity markets was $9.1 billion in 2017, which represents an increase of about 20% over 2016’s record-low costs. Energy costs made up $4.5 billion of the total, with both capacity costs and regional network load costs at $2.2 billion in 2017. The costs for reliability services such as operating reserve, regulation, and net commitment period compensation, totaled about $200 million.

Monday
Mar192018

Download March update of ISO-NE’s Annual Work Plan

ISO New England’s March update to its Annual Work Plan is now online. The work plan, published each September, outlines major priorities and activities for the year that are designed to improve upon existing ISO systems, practices, and services to New England. Detailed within are expected timelines and objectives related to planning/operations, markets, and capital projects. The ISO seeks stakeholder input on its work plan by sharing and discussing it with the Participants Committee. Ultimately, the work plan helps inform the ISO’s annual budget. For updates on markets projects, see the Wholesale Markets Project Plan page.

Monday
Mar122018

FERC issues order accepting CASPR revisions to Forward Capacity Market

The Federal Energy Regulatory Commission (FERC) issued an order on March 9, 2018, accepting ISO New England’s CASPR proposal in its entirety and rejecting all of the arguments raised in protests. The Commission notes that out-of-market state revenues can result in building more capacity than a region needs, overpayment by consumers for capacity, inefficiently low capacity market prices and the erosion of investor confidence. The Commission concludes that the CASPR proposal, along with the New England region’s minimum offer price rules (MOPR), appropriately addresses the issues associated with out-of-market state revenues while ensuring that the overall capacity market can continue to attract and maintain appropriate levels of new resource investment.

Click to read more ...

Wednesday
Feb282018

Annual media briefing focuses on state of region’s electric grid in 2018

As part of the ISO on Background series, ISO New England President and CEO Gordon van Welie provided reporters with an update on the state of New England’s power system during a media briefing on February 27, 2018. The briefing included an assessment of the regional power grid in 2018, as well as an overview of the current challenges. van Welie reported that New England’s power grid continues to operate reliably and the wholesale markets continue to provide competitive prices. However, the region’s growing fuel security risk, highlighted by a recent stretch of cold weather, is making reliable operations more tenuous. Competitive pricing in the wholesale markets is challenged by public policy initiatives to procure clean energy at above-market prices. View van Welie’s presentation and remarks from the event. Watch the briefing, or view van Welie’s presentation and remarks from the event.

ISO on Background is a series of periodic briefings designed to provide members of the media with an informal opportunity to learn more about the trends affecting New England’s electricity industry and ISO New England’s role in the region’s power system.

Tuesday
Jan302018

The benefits of competitive markets: Boston 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 January in the Boston Business Journal. “Viewpoint: Competitive electricity markets have transformed New England’s power grid” outlines the transformation of the regional power grid that has been accomplished by 20 years of competitive wholesale electricity markets. The op-ed notes that competition sends economic signals that encourage investment in power plants, transmission, and new technologies, and the markets have shifted investment risks from ratepayers to investors. “The result has been wholesale power prices that accurately reflect the cost of producing power, and a more reliable, cleaner power grid.” (A subscription to the journal may be required to access the article).

Monday
Jan082018

ISO-NE files proposal to harmonize competitive markets and state-sponsored resources 

ISO New England today filed proposed tariff changes with the Federal Energy Regulatory Commission (FERC) designed to help accommodate the entry of state-sponsored renewable resources into the Forward Capacity Market (FCM) over time, while protecting the competitive pricing mechanisms that enable the market to work as designed. The ISO’s proposal, Competitive Auctions with Sponsored Policy Resources (CASPR), was developed following the New England Power Pool’s (NEPOOL) Integrating Markets and Public Policy (IMAPP) process, a stakeholder forum aimed at identifying and discussing potential wholesale market design changes that would enable competitive markets to better accommodate state public policy objectives in New England.

Click to read more ...