The ISO has received several inquiries about how it intends to conduct the sixteenth Forward Capacity Auction (FCA 16) in light of the recent D.C. Circuit Court of Appeals order granting a stay of the FERC order that terminated Killingly Energy Center (Killingly). The questions relate to delaying the auction, specific auction results, and the protection of market participants’ commercially-sensitive information. The ISO has carefully considered these questions and concerns, and with the exigent circumstances provision of the Tariff not being applicable, it reaffirms that it will conduct FCA 16 as scheduled on Monday, February 7, 2022. The ISO will, however, take the additional steps described below.
At the conclusion of the auction this week, the ISO will calculate results with and without Killingly. These results will have unique prices and quantities cleared, with one set of prices and quantities that include Killingly and a second set of prices and quantities that do not include Killingly. The ISO intends to keep these results confidential until there is greater certainty about Killingly’s status. This will protect the commercially-sensitive information that might otherwise be revealed as part of the auction finalization process. This approach will allow the ISO to conduct the auction in a timely fashion, consistent with the requirements of its Tariff, while addressing the uncertainty created by the recent D.C. Circuit Court of Appeals order.
Furthermore, the ISO will not reveal the results of any clearing in the substitution auction until there is further resolution on Killingly’s status. The ISO believes that this is the most prudent path to both minimize disruptions to the administration of FCA 16 and the required timing of FCM activities related to subsequent auctions. After due consideration, the ISO is confident that this approach will ensure the integrity of the auction while also complying with the D.C. Circuit Court of Appeals order.