Stakeholder discussions underway on ISO-NE’s four-zone model for FCM; changes scheduled for FCA-9

ISO New England is targeting the ninth Forward Capacity Auction (FCA-9), scheduled for February 2015, to implement changes the modeling of zones in the region’s Forward Capacity Market (FCM). The ISO filed a schedule with FERC on July 30 and will continue discussions with stakeholders to comply with a May 31, 2013, FERC order on zonal configuration.

FERC’s May 31 order accepted the ISO’s proposal to retain four zones in the eighth auction but required the ISO develop “an adequate process for determining the appropriate number of, and boundaries of, capacity zones in the New England region over time as conditions change.” The order also required the ISO to submit a schedule for developing tariff revisions that include an objective criterion to revise capacity zones automatically as conditions change, or file an explanation why such a criteria is unnecessary.

The schedule filed by the ISO on July 30 includes a request that FERC issue a ruling by May 2014, which is before the new capacity and de-list bid deadlines for FCA-9.

The most-recent stakeholder discussion on zonal configuration was held on July 17. Additional meetings are scheduled for August 19 and September 3 at the Doubletree Hotel in Westborough, Massachusetts, from 9:30 a.m. to 4:00 p.m.

Read the related June 18, ISO Newswire article, FERC accepts ISO-NE’s four-zone model for FCA #8; ISO-NE to embark on stakeholder process.