NESCOE Advances its Vision of ISO-NE

The New England States Committee on Electricity (NESCOE) on Thursday presented its “Advancing the Vision” report to the NEPOOL Participants Committee.

Initially submitted to New England’s governors in June, the report refines the October 2020 joint statement issued by five of the region’s governors, who demanded reforms from ISO-NE in wholesale market design, transmission planning and governance.

The report is also the product of technical forums held earlier this year and stakeholder comments collected since October. Some of the report’s recommendations include:

• participate in the phaseout or replacement of the minimum offer price rule (MOPR) and ensure that any changes that ISO-NE seeks are thoroughly evaluated and justified based on verifiable data;
• work with stakeholders to implement a proactive, state-led, scenario-based transmission planning process for long-term analysis of state mandates and policies as routine practice;
• shape other efforts, such as updating rules to provide states with a more meaningful role in evaluating and selecting public policy-driven projects and seeking ways to improve the interconnection process for clean energy;
• enable state officials’ efforts to integrate equity and environmental justice considerations into decision-making on infrastructure;
• establish a standing committee on state and consumer responsiveness on ISO-NE’s Board of Directors; and
• schedule annual public meetings of the board to allow states and the public to hear from board members on current issues and priorities.

Monitor Presents Annual Report

Record-low wholesale energy prices and demand in New England produced an average LMP of $23.30/MWh in 2020, the lowest since the implementation of the energy market construct 17 years ago, according to Jeffrey McDonald, ISO-NE vice president of market monitoring, who discussed the Internal Market Monitor’s Annual Markets Report.

A milder winter in 2020 brought low gas prices, wholesale demand and energy costs, which accounted for almost 70% of the $1.1 billion drop in energy costs, McDonald said. COVID-related restrictions reduced demand, but the mild weather and growth in energy efficiency and retail solar generation had a more considerable impact. There were not many significant system events and no shortages because of high capacity and reserves, he said.

The Monitor added three new market recommendations to this year’s report. Two relate to the requirement to not reduce peak load by the output of behind-the-meter generation for transmission charges. The third centers on developing an offer review trigger price (ORTP) for co-located solar/battery facilities.

Energy Market Value Drops

ISO-NE’s energy market value for last month was $427 million (through July 28), down $51 million from the updated June valuation and $100 million higher than the same month in 2020, according to COO Vamsi Chadalavada’s monthly report to the PC.

Natural gas prices were 14% higher than in June. Average real-time hub LMPs were 0.6% higher at $36.04/MWh. Average natural gas prices and real-time hub LMPs were up 99% and 60%, respectively.

Daily uplift or net commitment period compensation (NCPC) payments totaled $2.7 million over the period, down $1.2 million from the adjusted June value and $900,000 more than in July 2020. NCPC payments were 0.6% of the energy market value.

Chadalavada said five new projects totaling 410 MW applied for an interconnection study — two battery, two solar and one wind — with in-service dates ranging from 2022 to 2024. ISO-NE is currently tracking 292 generation projects, which total approximately 31,884 MW.