Access documents related to the Alternative Forward Capacity Market (FCM) Commitment Horizons Key Project.
Project Overview
Interrelated efforts are underway that consider changing the timing and commitment horizons of FCM auctions to adequately prepare for the evolving electric power resource mix and expected clean energy system. Committee materials, which include descriptions and timeframes, reports, and FERC filings and orders are aggregated below.
- FCA 19 schedule delay: The importance of accurately reflecting resource contributions to resource adequacy in the capacity market as the grid evolves is a driver for implementing the Resource Capacity Accreditation (RCA) Key Project for Forward Capacity Auction 19 (FCA 19) and associated 2028-29 Capacity Commitment Period (CCP 19). The proposed FCA 19 schedule delay moved FCA 19 out one year, from February 2025 to 2026, to allow additional time to continue developing, discussing, and planning for RCA implementation in time for CCP 19.
- Assessing move from forward/annual to prompt/seasonal capacity market and additional FCA 19 delay: After an evaluation and discussion period, the ISO made the recommendation in Q1 2024 to develop a capacity auction that runs closer to the capacity commitment period (prompt) and restructuring the CCP from annual to sub-annual (seasonal) commitment periods, starting with FCA 19/CCP 19. Consistent with this recommendation, the ISO proposed a further two-year delay of the capacity auction to provide maximum flexibility to:
- Design a prompt and seasonal market for CCP 19
- Develop RCA reforms for CCP 19 in the context of a prompt and seasonal market
- Initiative to design and implement RCA/prompt/seasonal constructs: If FERC accepts the further delay, ISO will pause stakeholder discussions to evaluate scope and phasing of work, and develop a work plan for a combined accreditation design with a prompt and seasonal capacity market to implement for CCP 19. If FERC rejects the further delay, ISO would target implementing RCA under the forward market construct for FCA 19 in Feb. 2026 (the approved one-year delay), with a FERC filing in Q4 2024.
The Alternative FCA Commitment Horizons project is just one of several key projects at the ISO, which continuously undertakes a variety of short- and long-term projects to enhance the region's competitive wholesale electricity markets and ensure reliable operation of the power grid.
