Update on FCA 16

Forward Capacity Auction (FCA) 16 began as scheduled Monday, February 07, 2022 following Friday’s D.C. Circuit Court of Appeals order staying the Federal Energy Regulatory Commission’s (FERC) January 3, 2022 order terminating the Killingly Energy Center’s capacity supply obligation.

ISO New England is complying with the court’s order and will allow Killingly to participate in this week’s auction. However, at the conclusion of the auction, the ISO will calculate results with and without Killingly. These results will have unique prices and quantities cleared, with one set of prices and quantities that include Killingly and a second set of prices and quantities that do not include Killingly.

Following the conclusion of FCA 16, should FERC confirm the termination of Killingly’s obligation, ISO New England will adjust the auction results to reflect the removal of the Killingly project.

The ISO intends to keep auction results confidential until there is greater certainty about Killingly’s status. This will protect the commercially-sensitive information that might otherwise be revealed as part of the auction finalization process. This approach will allow the ISO to conduct the auction in a timely fashion, consistent with the requirements of its Tariff, while addressing the uncertainty created by the recent court order.

The ISO believes that this is the most prudent path to both minimize disruptions to the administration of FCA 16 and the required timing of capacity market activities related to future auctions. After due consideration, the ISO is confident that this approach will ensure the integrity of the auction while also complying with the D.C. Circuit Court of Appeals order.

Industry News & Developments
FCA 16, wholesale markets