Below, affected ISO customers can learn more about changes to existing systems or procedures related to the Forward Capacity Market (FCM) Delayed Commercial Resource Treatment (DCRT) project. This project is one of several that ISO New England has undertaken, in collaboration with stakeholders, for the continued development of the region’s wholesale electricity markets. Target dates indicated below are subject to change.
See Participant Readiness Project Outlook for more detail on specifically affected customers and systems for this and other major projects.
Implemented: February 12, 2019
Under the Forward Capacity Market (FCM) Delayed Commercial Resource Treatment (DCRT) project, FCM participants with new resources or existing resources, other than existing import capacity resources, unable to fulfill their capacity supply obligation (CSO) will now choose to take action to cover their CSO or be assessed a new charge. Three new calculations were introduced: two to determine if a resource is unable to fulfill its obligation, and if so, a third determines a monthly failure-to-cover charge.
The MDO is each asset’s highest output level at any point during the MDO historical period. The historical period begins at the start of the capacity commitment period (CCP) six years prior to the start of the current CCP and as each month passes within the current CCP, it is included in the MDO determination. The historical period reaches a full seven-year term when the final month of the CCP is settled and resets to a six-year period when the next CCP begins.
The MDO report for the prior six-year historical period as of the start of the upcoming CCP is provided to participants before the third annual reconfiguration auction (ARA 3). The resource the assets are mapped to at that time is also referenced in the report to assist participants with determining the sum of the MDOs to be compared to each resource’s CSO.
The unproven CSO quantity test is applied to every resource with a CSO during the monthly settlement process. The unproven CSO quantity test is calculated by comparing the resource’s CSO to the sum of the MDOs of all assets mapped to the resource. If the CSO for a given month is greater than the sum of the MDOs for that month, participants can submit demand bids in the reconfiguration auction to reduce their obligation or perform to the level of their CSO to avoid a failure-to-cover charge.
For CCPs beginning June 1, 2019 and continuing through May 31, 2022, the monthly failure-to-cover rate for each capacity zone is the highest clearing price from the Forward Capacity Auction (FCA) and each of the three ARAs for the CCP for each zone. For CCPs beginning June 1, 2022, the monthly failure-to-cover rate for each capacity zone will be derived by re-running ARA 3 for the applicable CCP with the total unproven CSO quantity by capacity zone determined as of the completion of the production ARA 3, inserted as a demand bid at the FCA starting price in the applicable capacity zone. The resulting clearing price(s) will be the monthly failure-to-cover rate(s) and are posted in “FCM Failure to Cover Charge Rate Report”.
Beginning with ARA 3 in 2019, ISO New England will discontinue its practice of submitting demand bids into the third annual reconfiguration auction at the FCA starting price on behalf of participants with projects that have not achieved their critical path schedule milestones. If such a participant knows that its resource will not be able perform to the level of its CSO, they must submit their own bids without ISO New England intervention to avoid the failure-to-cover charge.
Additionally, under the project pipeline analysis plans are:
Affected market participants were required to take specific steps or adapt to changes in ISO Systems, as described below and should be mindful of additional time-bound items, some of which may require customers to take specific steps or adapt to changes in ISO systems after the project implementation date.
Please consider subscribing to Participant Readiness, Market Notices, Information Technology (IT) Notices, and MIS Report Issues to receive notices posted to the ISO calendar for future projects.
| TIMING OR DEADLINE | SYSTEM | ACTION OR EVENT |
|---|---|---|
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Prior to ARA 3 |
MIS reports |
Review MDO annual report for potential uncovered CSO |
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Prior to each obligation month |
FCM Reconfiguration Auction |
Submit demand bids to shed uncovered CSO prior to obligation month |
The ISO conducted online information sessions for affected customers to learn about changes and ask questions in advance of project implementation. Please consider subscribing to ISO Training to receive notices posted to the ISO calendar for future projects.
| DATE | EVENT AND SUPPORTING MATERIALS |
|---|---|
|
April 8, 2022 |
FCM Cost Allocation self-paced training curriculum available on ISO-TEN. Explains the cost allocation methodology to be implemented on June 1, 2022 |
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April 8, 2022 |
FCM Cost Allocation knowledge article provides an overview of the April 8, 2022 FCM Cost Allocation training and helpful tips about accessing ISO-TEN |
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October 18-21 2021 |
FCM 101: Lesson 6B2: Supplier-Side Settlement (Failure to Cover) virtual training session |
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Q4-2018 Q4-2021 Q1-2022 |
Quarterly Settlements Issues Forum (QSIF) 2018: 2021: 2022: |
Please also see the following frequently asked questions (FAQs):
The following documents were provided to market participants affected by the project for specific instructions on completing related tasks or processes and helpful answers to frequently asked questions.
| DOCUMENT | NOTES (if necessary) |
|---|---|
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Report of the Failure to Cover Charge Rate effective 2022-2023 by Capacity Zone |
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MIS report changes |
MIS report descriptions, templates, and sample files will be revised. The report list, descriptions, and templates will be announced as they become available.
New reports:
The most recent version of each MIS report can be found on the MIS Report Descriptions, Template and Samples web page. |
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Web guide for participating in the Forward Capacity Market |
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Sec. III.13.7.5.1.1.10 Failure to Cover Charge Adjustment |
See more on the Wholesale Markets Project Plan page
