ISO New England - FCM Forward Auction Mechanics Frequently Asked Questions

FCM Forward Auction Mechanics Frequently Asked Questions

Who is authorized to bid into the first
Forward Capacity Auction?

Will an FCA be skipped to create the 40-month gap between future FCA?

How do the start and end of round prices get set?

When does the total amount of capacity that is approved during Qualification get posted?

Will a mock auction be held prior to the first FCA?

Who is authorized to bid into the first
Forward Capacity Auction?

Bidding is limited to the Lead Market Participant of Capacity Resources qualified for the first Forward Capacity Auction. Each Bidder is required to have a valid Digital Certificate and be assigned the role of Forward Capacity Auction/Authorized Individual in ISO's Customer and Asset Management System (CAMS) on or before COB, January 29, 2008. Authorized Individuals granted this role after January 29th, will not be able to participate in the first Forward Capacity Auction for Commitment Period 2010_2011.

The Security Administrator (SA) for your company is the person authorized by your company to assign User roles, including this role, in ISO's CAMS system.

Read the CAMS user guide for more details.

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Will an FCA be skipped to create the 40-month gap between future FCA?

The current proposal is 40-month intervals. ISO New England is considering language that would provide for achieving the 40-month schedule faster once it has experience with the FCA.

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What is Intraround bidding?

The FCA is conducted in discrete rounds. Intraround bids allow bidders in each round to express their demand curves along a line segment between the starting and ending price for the round. This process allows the auction to be conducted in a limited number of rounds since preferences for intermediate prices can be expressed, allowing the auction manager to choose a larger bid increment.

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How do the start and end of round prices get set?

The auction manager will set the prices within the auction to facilitate an efficient auction.

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When does the total amount of capacity that is approved during Qualification get posted?

The auction manager will announce before the FCA is conducted the total amount of capacity participating in the auction. The ISO may announce the total amount of capacity at the end of the Show of Interest process and total qualified capacity prior to the auction.

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Will a mock auction be held prior to the first FCA?

The auction manager is required to conduct a mock auction before the first FCA. In addition, training presentations will be held and a bidder's manual will be available several weeks before the first FCA.

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