FCM Redesign Key Project

Access documents related to the Forward Capacity Market (FCM) Redesign project.

Project Overview

This project addressed requirements in Federal Energy Regulatory Commission (FERC) Order ER10-787, issued April 13, 2011. This order specified, among other things, that the ISO:

• Revise its proposed changes to the FCM to implement a buyer-side mitigation approach
• Model additional capacity zones
• Eliminate the use of an auction floor price
• Reduce the dynamic delist bid threshold to $1.00/kW-month
• Eliminate the use of both the Quantity Rule provisions and the use of CONE (cost of new entry) in setting auction thresholds

Related orders also later required changes to the treatment of out-of-market (OOM) capacity. This project has contained all the elements of the associated FERC orders, as well as additional conforming changes to other components of the market rules as a result of the orders.

The FCM Redesign project was 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.