FERC has approved an additional two-year delay of ISO-NE’s forward capacity auction (FCA) 19, pushing the auction to February 2028 (ER24-1710). The auction applies to the 2028/29 capacity commitment period (CCP), which begins in June 2028.
The delay will give ISO-NE time to develop major changes to the timing and structure of its capacity auction. The RTO has proposed changing its “forward annual” auction to a “prompt seasonal” auction. This would reduce the time between the auction and the CCP from a span of over three years to just a few months, while the annual CCP would be split into distinct seasons. (See ISO-NE Moving Forward with Prompt, Seasonal Capacity Market Design.)
ISO-NE also plans to use the delay to continue working on its resource capacity accreditation (RCA) project, which is intended to better align capacity awards with system reliability benefits. (See ISO-NE: RCA Changes to Increase Capacity Market Revenues by 11%.)
“The further delay of FCA 19 provides the opportunity for substantial market efficiency improvements and reliability benefits associated with a prompt seasonal market,” ISO-NE wrote in its initial filing.
The RTO added that implementing a prompt seasonal market at the same time as the RCA reforms would create “multiple synergies,” including the ability to take extra time to develop an optimal approach to accrediting gas resources, which has been a sticking point in the RCA stakeholder discussions. (See NEPOOL MC Backs Further Forward Capacity Auction Delay.)
Following FERC’s May 20 approval of the delay, ISO-NE has indicated it will pause RCA discussions and will “target discussing initial scope considerations with the [Markets Committee] in July, Dane Schiro said at this month’s Markets Committee meeting.
Regarding resource modeling and projected capacity market revenues for different resource types, “a lot of the underlying assumptions will remain the same,” said ISO spokesperson Matt Kakley. He added that some resources with varying seasonal benefits could see seasonal swings in their accreditation values, while some resources will experience minimal changes.
The ruling will delay the auction until 2028 but does not commit the region to implementing a prompt seasonal market. FERC previously approved a one-year delay as ISO-NE and stakeholders contemplated pursuing the market changes. (See FERC Approves ISO-NE’s One-Year Delay of FCA 19.)
Like the previous delay filing, if ISO-NE ultimately can’t pass a prompt and seasonal auction design, future auctions will proceed in 10-month increments, gradually increasing the time between the auction and the CCP until the auction returns to its current three-year-forward timeline.
The filing was supported in comments by ISO-NE’s internal and external market monitors and the New England States Committee on Electricity and was not opposed by any groups.
“The proposed delay will allow ISO-NE and stakeholders the time necessary to develop a prompt and seasonal capacity market framework and refine capacity accreditation methods,” FERC ruled.
