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Carissa P. Sedlacek. Manager, resource integration and analysis. Reliability Committee Meeting. Forward Capacity Auction #6 (FCA #6) Results Summary. May 15, 2012 | WESTBOROUGH, ma. Stephen J. Rourke. Vice president, system PLANNING. Highlights .
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Carissa P. Sedlacek Manager, resource integration and analysis Reliability Committee Meeting Forward Capacity Auction #6 (FCA #6) Results Summary May 15, 2012 | WESTBOROUGH, ma Stephen J. Rourke Vice president, system PLANNING
Highlights • The sixth Forward Capacity Auction (FCA #6) was held April 2-3 and successfully procured resources to satisfy the region’s Installed Capacity Requirement (ICR) for the 2015/2016 Capacity Commitment Period (CCP) • Approximately 38,601 MW of qualified resources competed to provide the needed 33,456 MW of capacity (Net ICR) • Of the qualified new resources, about 84% (or 2,041 MW) of new resources (generation, imports, demand resources) cleared the auction and have a Capacity Supply Obligation (CSO) • Approximately 1,889 MW of de-list bids submitted were approved. Those not approved and retained for reliability were in the NEMA/Boston load zone • A dynamic de-list bid for Vermont Yankee (604 MW) was accepted • The ISO filed results of FCA #6 with FERC on April 30
FCA #6 Overview • There were seven rounds in which Participants could submit bids and offers • Starting price was $11.446/kW-mo • Ending price was $3.434/kW-mo • Cleared MW will receive a prorated payment of $3.129/kW-mo unless they elect to prorate their MW obligation • FCA #6 results FERC Filing made on April 30 is available at: • http://www.iso-ne.com/regulatory/ferc/filings/2012/apr/er12-___-000_04-30-12_6th_fca_results_filing.pdf • The resource proration election window was April 9-11 and results were provided to Participants (via MIS report) in early May • No resources in the NEMA/Boston load zone were allowed to prorate due to the fact some resources were retained for reliability
FCA #6 Auction Details • ICR for June 1, 2015 through May 31, 2016 is 34,498 MW • After accounting for 1,042 MW of Hydro-Québec Installed Capacity Credits, 33,456 MW remained to be procured (Net ICR) • Approximately 38,731 MW of resources qualified to participate in FCA #6 at the time of the Informational Filing • However, due to new resource termination and/or withdrawal from Critical Path Schedule monitoring, only 38,601 MW of qualified resources actually did participate • Qualified Existing Resources (36,174 MW) • 32,076 MW of Generating Capacity, including Intermittent* • 315 MW of Import Capacity • 3,783 MW of Demand Resources • Qualified New Resources (2,427 MW) • New Supply Resources (1,953 MW) • 133 MW Generating Capacity • 1,820 MW Import Capacity • New Demand Resources (474 MW) * Includes new RTEG which receives existing treatment in the auction
FCA #6 Auction Details, cont. • Approximately 617 MW (uncapped by Maximum Capacity Limit (MCL) and Real-Time Emergency Generation (RTEG)) remained at the floor price • Existing Resources (34,285 MW)* • 30,954 MW of Existing Supply Resources • 30,678 MW of Generation Capacity • 276 MW of Import Capacity • 3,331 MW of Existing Demand Resources • New Resources (2,041 MW) • New Supply Resources (1,727 MW) • 79 MW of Generation Capacity • 1,648 MW of Import Capacity** • New Demand Resources (314 MW) • Approximately 36,309 MW (capped by RTEG) total capacity was used to calculate the effective payment rate * Accounts for Non-Price Retirements and includes new RTEG ** Capped by Interface Limits
New Capacity Resources by State Demand Resources* 314 MW Generation 79 MW * Includes 8% T&D Gross-up and new RTEG
New Demand Resources by Type314 MW Total Includes approximately 247 MW of New Energy Efficiency Projects
FCA #6 De-list Details • A total of 191 de-list bids (approximately 1,968 MW) were received from resources in all six New England states. Approximately 96% were accepted • Permanent, static, exports and administrative export bids were submitted prior to the auction at prices greater than 0.8 X Cost of New Entry (CONE) • 10 resources submitted (approximately 351 MW) • All 351 MW were accepted • Additional static de-list bids were submitted by the ISO on behalf of the Participant due to the inability to qualify winter MW (“low winter flag”) • Submitted for 31 resources representing 122 MW (22 MW in NEMA) • All 122 MW were accepted • Dynamic de-list bids are submitted during the auction at prices less than 0.8 X CONE (or below $4.758/kW-mo) • 150 dynamic de-list bids (approximately 1,495 MW) • 1,416 MW accepted • 79 MW denied (6 dynamic de-list bids in the NEMA/Boston load zone)
Approved Submitted De-list Bids by State 1,889 MW Total
FCA #6 De-list Details, cont. • A dynamic de-list bid for Vermont Yankee (604 MW) was accepted for FCA #6 based on completion of various system upgrades in MA and VT that resolve identified reliability concerns • A dynamic de-list bid was also submitted in FCA #4 & 5 but the resource was retained for reliability in those auctions • De-list bid submittal trends are starting to emerge • AES Thames • Cleared a Dynamic De-list bid for the unit in FCA #5 & 6 • West Springfield 3 • Cleared a Dynamic De-list bid for the unit FCA #5 • Cleared a Static De-list bid for the unit FCA #6 • Bridgeport Harbor 2 • Cleared a Dynamic De-list bid for the unit in FCA #4, 5, & 6 • Somerset Jet 2 • Cleared a Static De-list bid for the unit in FCA #3, 4, & 5 • Cleared a Permanent De-list bid for the unit in FCA #6 • Retired effective 4/20/2012 • Somerset 6 • Cleared a Static De-list bid for the unit in FCA #1, 2, 3, 4, & 5 • Cleared a Permanent De-list bid for the unit in FCA #6 • Retired effective 4/18/2012 • Resources are also exiting the market via Annual Reconfiguration Auctions and Bilaterals
Example – Real Time Emergency GenerationChange in Capacity Supply Obligations (CSOs)
Resources Retained for Reliability • Few resources retained for reliability previous auctions • Norwalk Harbor Unit 1 in FCA #1 • Unit #2 was later allowed to de-list • Salem Harbor Units 3 & 4 for FCA #3, 4 and 5 • Area transmission upgrades ongoing • Restudy results for the fourth Capacity Commitment Period being discussed later today • Vermont Yankee for FCA # 4 and 5 • Area transmission upgrades ongoing • Restudy results for the fourth Capacity Commitment Period being discussed later today • These resources were retained for local reliability reasons
Trends in De-list Bids Submitted 1,191 MW Rejected 581 MW Rejected 79 MW Rejected 604 MW Rejected 330 MW Rejected 0 MW Rejected
Resources Retained for Reliability in FCA #6 • There were six dynamic de-list bids (79 MW) rejected • All in the NEMA/Boston load zone • Five demand resources • One partial de-list from the Kendall Steam generating facility • Restudy of these rejected de-list bids will begin this summer with the hope of allowing these resources to de-list based on changes in load forecast and other assumptions
Next Steps for the Rejected De-list Bid • A presentation to the RC is expected to be made in June to discuss in detail the resources that were retained for reliability (de-list bid rejection) • In accordance with Planning Procedure No. 10, Section 7.5.1., an advisory RC vote regarding concurrence with how the analyses for the rejected De-list Bids was conducted is required and expected in June • “…The Reliability Committee shall provide formal input and advice to the ISO with regard to rejected de-list bids after the relevant FCA through an advisory vote….” • Pursuant to Market Rule 1, Section III.13.2.5.2.5.1(a)(ii), these resources will continue to be re-evaluated prior to June 1, 2014 to determine if it may be allowed to de-list
Reliability Committee Meeting Forward Capacity Auction #6 (FCA #6) Results Summary – Appendix May 15, 2012 | WESTBOROUGH, ma
Summary of Auction Rounds withExcess Supply and Price Changes 1capped by Import Interface Limits and MCL
Results of New England’s FCA #6 Effective Payment Rate ($/kW-Mo): $3.129 RTEG: $3.044 Price at beginning of auction: $11.446/kW-Mo (2 X CONE) Need in 2015 (NICR):33,456 MW Price at end of auction: $3.434/kW-Mo (Floor price: 0.6 X CONE) Resources Capped by RTEG 36,309 MW Qualified Resources Entering the Auction: 38,601 MW Excess Capacity: 2,853 MW (Total cleared minus net ICR capped by RTEG) Resources cleared (uncapped) in the auction at the floor price: 36,326 MW Generating Resources: 30,757 MW Cleared Imports: 1,924 MW Demand Resources: 3,645 MW New Resources: 2,427 MW New: 79 MW Existing Resources: 36,174 MW Existing: 30,678 MW Existing: 276 MW New: 1,648 MW MW from existing resources requestingto de-list 1,968 MW Existing: 3,331 MW New: 314 MW Demand: 3,783 MW Demand: 474 MW Capacity Zones: One No Price Separation Generating: 32,076 MW Generating: 133 MW Rejected: 79 MW Approved: 1,889 MW Imports: 315 MW Imports: 1,820 MW Generating: 1,398 MW Import: 39 MW Demand: 452 MW