FERC accepted the results of ISO-NE’s Forward Capacity Auction 18 on June 18, finding that the auction was run according to the RTO’s tariff and that protests submitted by climate activists were outside the scope of the proceeding (ER24-1290).  

FCA 18, which was held in February and relates to the 2027/28 capacity commitment period (CCP), saw an approximately 40% increase in the cost of capacity relative to the previous auction, along with a rise in renewable resources. (See Prices, Renewables Rise in New England Capacity Auction.) 

The auction likely marks the last auction held prior to the implementation of major changes to ISO-NE’s capacity market.  

The RTO is amid a multiyear process reworking how it calculates resource capacity values, and also is pursuing significant changes that would split the annual CCP into seasons and hold auctions much closer to each CCP. This year, FERC approved a three-year delay of the next capacity auction to give ISO-NE time to develop these changes with the goal of implementing them for FCA 19. (See FERC Approves Additional Delay of ISO-NE FCA 19.) 

ISO-NE’s filing of the results spurred opposition from climate activists, who argued the auction was biased in favor of fossil fuel resources. (See Climate Activists Urge FERC to Reject Results of ISO-NE FCA 18.) 

“These results are in violation of ISO-NE’s tariff and mandate to ‘protect the health of the region’s economy and the well-being of its people by ensuring the constant availability of competitively priced wholesale electricity — today and for future generations,’” the group No Coal No Gas wrote in comments signed by more than 4,000 individuals. The group also protested the results of the three prior FCAs.  

“FCA 18’s award of nearly $350 million in forward capacity payments to fossil fuel peaker plants is a clear violation of this mission,” the organization added. “Supporting fossil fuel generators that can only provide electricity by worsening climate change and exacerbating grid instability is dangerous, irresponsible grid management.” 

Echoing its response to the protests of previous FCAs, FERC sided with ISO-NE, ruling that the structural critiques of the auction are outside the scope of the proceeding. (See FERC Accepts Results of ISO-NE FCA 17.)

The commission wrote that the protests “do not bear on the sole question here — namely, whether ISO-NE conducted FCA 18 in accordance with the requirements set forth in its tariff.” 

“Instead, these protests largely challenge the FCM design and raise various challenges related to climate change, fossil fuels, the minimum offer price rule and the Merrimack Generating Station, which are issues that are beyond the scope of the instant proceeding,” FERC said. 

FERC added that the concerns about a conflict between ISO-NE’s mission statement and the capacity market design “are more appropriately raised in the stakeholder process.” 

ISO-NE applauded FERC’s ruling, writing in a statement that “the Forward Capacity Market is and has been open to all resources able to provide capacity to the region, and claims of bias are without merit.” 

“All the new resources clearing in this year’s auction were renewable energy, battery storage or demand-reducing resources,” wrote ISO-NE spokesperson Matt Kakley. “We look forward to continuing to work with stakeholders and the New England states on longer-term changes to the capacity market.” 

Meanwhile, climate activists expressed disappointment with the decision and took issue with the commission’s suggestion that they raise their concerns within the NEPOOL stakeholder process.  

Marla Marcum of No Coal No Gas emphasized that the NEPOOL process is closed to nonmembers and that member groups representing end users have minimal voting power within the organization. 

“Referring us to a body to which we are unlikely to gain access, and which explicitly limits public input and agency, is unfortunately typical of this system — a system designed to prevent meaningful participation,” Marcum said, adding that FERC’s ruling suggests ratepayers “should have no effective way to participate in decisions about the billions of dollars taken from their utility bills every year to manage the grid.”