ISO New England secures new and existing generation, resources for 2012-2013

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Related Companies Dominion Resources Inc. (D) ISO-NE

Related Documents Press Release (PR) ISO-NE 11/2/2009, filed on 11/2/2009 Company Communication (CORR) ISO-NE 10/30/2009, filed on 10/30/2009

Related Articles 10/7/2009 ISO New England declares 3rd FCM auction a success

Related Power Plants Salem Harbor 1-3 Salem Harbor 4

ISO New England Inc. said Nov. 2 that the region has secured the new and existing generation and demand-side resources needed to meet the consumer demand for electricity expected in the 2012-2013 time frame.

These resources were acquired through the annual forward capacity auction held in October, the ISO said. Companies providing electricity to consumers in New England are obligated to buy capacity through this auction to ensure adequate resources are available to meet power system reliability requirements and forecast long-term electricity demands.

More than 40,995 MW of resources from new and existing demand- and supply-side resources competed during seven rounds Oct. 5-6 to supply the 31,965 MW needed three years out.

The ISO also said more than 2,796 MW of new supply- and demand-side resources were accepted through the auction to supply capacity in 2012 and 2013. Of these new resources, 309 MW represent new demand-side projects, such as energy efficiency, demand response and distributed generation, and 2,487 MW represent new supply projects.

New resources are concentrated in areas of high electricity demand, the ISO said, adding that projects in Connecticut account for 235 MW of the total new resources; Maine, 40 MW; Massachusetts, 1,635 MW; New Hampshire, 25 MW; Rhode Island, 21 MW; and Vermont, 24 MW.

Existing power plants in New England fulfilled the largest share, accounting for 30,558 MW of the required 31,965 MW total. The ISO also said existing demand resources selected in the auction fulfilled 2,587 MW of the 2012-2013 requirement.

The auction started with an opening bid price of $9.84 per kW/month and systematically decreased through seven bidding rounds. In the final round, the bid price reached the auction's floor price of $2.95 per kW/month, with 5,061 MW of excess supply remaining, the ISO added. Following the auction, power plants retained for reliability and eligible for out-of-market compensation include Dominion Resources Inc.'s Salem Harbor 3 and Salem Harbor 4, the combined output of which totals about 580 MW.

The ISO also said a filing made with FERC Oct. 30 provides full details regarding the auction inputs and results.

While the first three auctions held under the forward capacity market construct have proven successful, a stakeholder Forward Capacity Market Working Group is focused on refinements to New England's three-year-old market, the ISO said.

"We've made progress in assessing the impacts of the auction that are working well and identifying areas that may need enhancement," ISO Senior Vice President and COO Vamsi Chadalavada said in a statement.