FAQs: Annual Reconfiguration Auctions

• What are Annual Reconfiguration Auctions (RAs)?
• How does participation in a reconfiguration auction impact a market participant’s financial assurance (FA) obligation?
• Where are the results of the annual and monthly reconfiguration auctions posted?
• Can a resource with a winter or summer qualified capacity of 0.00 MW acquire capacity in an annual reconfiguration auction?
• Can a resource acquire a capacity supply obligation (CSO) in an annual reconfiguration auction by partnering with a resource attempting to shed its obligation?

For general information, please refer to the FCM Participation Guide for reconfiguration auctions.

What are Annual Reconfiguration Auctions (ARAs)?

Reconfiguration auctions take place before and during a capacity commitment period (CCP) to allow participants to buy and sell capacity obligations and adjust their positions.

• Annual reconfiguration auctions (ARAs) to acquire one-year commitments are held approximately two years, one year, and just before the FCA commitment period begins.
• Monthly reconfiguration auctions, held two months before each month in a commitment period, adjust the commitments for the respective monthly reconfiguration auction.

The FCM Participation Guide includes a general timeline.

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How does participation in a reconfiguration auction impact a market participant’s financial assurance obligation?

A resource (whether commercial or noncommercial) acquiring a capacity supply obligation during a reconfiguration auction does not incur any additional financial requirements with that transaction.

However, additional financial assurance may be required if the resource that shed all or part of its CSO was doing so at a price greater than the price at which it acquired the CSO.

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Where are the results of the annual and monthly reconfiguration auctions posted?

Publicly available information about the reconfiguration auctions results can be viewed on the ISO New England website as part of ISO Express data. Market participants who participate in a reconfiguration auction receive an MIS report via their secure ftp site (SP_ARARESULT for the annual RA and SP_MRARESULT for the monthly RA). Please refer to MIS reports for details on how to access your secure ftp site.

Please refer to the Annual and Monthly FCM Events for upcoming dates.

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Can a resource with a winter or summer qualified capacity of 0.00 MW acquire capacity in an annual reconfiguration auction?

No, a resource with a zero value for either its winter or summer qualified capacity cannot participate in an ARA. Per Market Rule 1, Section III.13.4.2.1.1, a resource with a winter ARA qualified capacity of 0.00 MW or a summer ARA qualified capacity of 0.00 MW will have a supply offer limit of 0.00 MW. This is because in an annual auction, the value used is the minimum of the 12 monthly QC values.

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Can a resource acquire a CSO in an annual reconfiguration auction by partnering with a resource attempting to shed its obligation?

Resources shedding CSOs in an ARA cannot directly partner with resources acquiring CSOs. However, as of April 30, 2019, market participants can submit an annual reconfiguration transaction (ART). An ART is a fixed-price private agreement between two resources based on the intent of one participant to shed a resource’s CSO in the ARA and the desire of another participant to acquire a CSO. For additional clarification, please refer to the ARTs Project Page.

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