It’s time to give Traders, Energy Suppliers and Green Buyers, like Google and Budweiser, free access to Capacity Markets Nationwide
- Feb 4, 2019 4:54 pm GMT
Capacity Markets operated by ISO New England (ISONE), PJM and the New York ISO (NYISO) are very tightly controlled. In the case of ISONE, which I’m most familiar with, auctions are held 3 years in advance of when the capacity is needed (called the capacity commitment period, “CCP”), with annual “reconfiguration auctions” to allow buying/selling of Capacity Supply Obligations (CSO) for the CCP. Monthly auctions also occur during the CCP. For example, ISONE is holding an Auction, FCA #13, on 2/4/2019 to secure capacity for 2022-2023. Participation in an FCM auction is limited to Market Participants that register with each ISO and the process is different, across ISO’s. Recent reverberations within PJM are also a good indicator that a new solution is needed. Both FERC and State initiatives have tried in the past to address tensions in Capacity Markets arising from out of market capacity purchases, without success.
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