Gavin Bade, UtilityDive
Summary
ISO-NE unveiled its Competitive Auctions with Sponsored Policy Resources (CASPR) proposal in April 2017 after a series of stakeholder meetings over how to better integrate state energy policies into its wholesale market construct.
The concern is that resources under subsidies and mandates — like renewable energy standards or nuclear credits — will push down capacity market prices, forcing unsubsidized resources out of the market and potentially threatening reliability.
To fix that, ISO-NE proposes to split its capacity markets in two. The first round of auctions of would work much like the current model, with resources subject to existing minimum pricing rules and other obligations.
Then, in a second auction, retiring resources that earn capacity supply obligations could transfer those obligations to new, subisidized resources that do not have the obligation. The existing resource would then retire and pay the subsidized resource — such as wind or solar — for meeting the obligation.
The price for those resources would be determined by a second auction, labeled the "substitution auction," in a manner similar to the settlement process that occurs today between the real-time and day-ahead energy markets.
The proposal split ISO-NE stakeholders. State regulators from Massachusetts, Maine and New Hampshire filed comments to support the proposal, while Vermont, Rhode Island and Connecticut opposed it. Power generators also filed comments in support of the proposal, while renewable energy and consumer advocate interests pushed for changes or rejection.
In a Wednesday filing at FERC, ISO-NE argued critiques of the proposal are not relevant to the Commission's consideration.
Full Article
Continue Reading
#MRCNews#PolicyandRegulation#FederalEnergyRegulatoryCommission#NorthAmerica#UnitedStates#RenewableEnergy#GridModernization