SPI News: FERC accepts ISO-NE and NEPOOL proposal to institute downward-sloping demand curve in New England’s capacity market
The Federal Energy Regulatory Commission (FERC) issued an order on
May 30, conditionally accepting the ISO New England and New England Power Pool proposal to implement a downward-sloping demand curve in the Forward Capacity Market. A sloped demand curve will help moderate price volatility over time and will also allow the removal of administrative pricing triggers, such as the Insufficient Competition and Insufficient Supply rules.
In the ruling, FERC directed ISO New England to submit a compliance filing within 60 days to clarify how new resources could qualify for the Renewable Technology Resource exemption in future capacity auctions.
Read more about the downward-sloping demand curve in the ISO Newswire article, ISO-NE and NEPOOL submit proposal to establish sloped demand curve for future Forward Capacity Market auctions.