Access documents related to the Net Commitment-Period Compensation (NCPC) project.
As part of the Energy Market Offer Flexibility project, the ISO is required to make conforming changes to the NCPC payment rules to complement the ability of participants to modify their offers throughout the operating day.
NCPC provides a payment mechanism to mitigate financial penalties that could otherwise accrue to entities with resources operating out-of-market in response to ISO New England’s instructions to produce more or less electricity. The NCPC project is designed to ensure that market participants that properly follow ISO commitment and dispatch instructions are not financially harmed (as compared to alternative actions they might have taken) when the locational marginal price cannot otherwise ensure that incentive.
The NCPC 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.