ISO-NE on Friday asked the D.C. Circuit Court of Appeals to undo its stay order, which is keeping the Killingly Energy Center’s capacity supply obligation alive and holding up the results of the Forward Capacity Auction held earlier this month.

Warning of increasing damage to New England’s capacity market and its participants, ISO-NE argued that because Killingly developer NTE Energy has now defaulted on its financial assurance, the stay ordering the RTO to wait on a rehearing resolution from FERC is moot because the under-development gas plant will lose its CSO regardless of the outcome.

“The harm to the market and market participants of the delayed auction results grows with each day it continues, and the delay soon will disrupt activities necessary to the timely and orderly conduct of next year’s auction. The ISO therefore respectfully submits that action by the court on this motion by Feb. 25, 2022, is justified and necessary,” ISO-NE wrote in a filing to the court.

The grid operator has said that at the current pace, it may not be able to deliver results of the auction until mid-March, and that next year’s auction may also have to be delayed by a month. (See related story, Killingly Uncertainty Could Delay Capacity Auction Results Another Month.)

NTE was using a letter of credit for its required financial assurance with ISO-NE that will expire at the end of this month, and therefore was considered to have zero value 30 days prior (Jan. 31), according to the RTO’s rules. The company failed to extend the letter of credit or provide another form of financial assurance to resolve its default and is now no longer in compliance with the financial assurance rules.

“Termination of Killingly’s capacity supply obligations by operation of the tariff moots the court’s stay order. With or without the stay order, Killingly’s capacity supply obligations are terminated. Therefore, the ISO requests that the court dissolve its stay order because the stay no longer serves any purpose,” ISO-NE said.