New resources that want to participate in the Forward Capacity Market (FCM) must submit documentation indicating the resource’s ability to operate at a specific megawatt-value for the relevant capacity commitment period. ISO New England evaluates this information to confirm capacity.
The first step in qualifying a new resource is submitting a New Capacity Show of Interest (SOI) form with project information via the Forward Capacity Tracking System (FCTS).
Regarding substitution auction participation: Beginning with the annual Forward Capacity Auction (FCA) to be held in February 2019, new renewable, clean, or alternative resources that receive revenue from state or municipal governments outside of the markets (“sponsored policy resources”) can elect to participate in a substitution auction. Be aware that some of the deadlines overlap with those for the primary auction. See FCM Substitution Auction Overview and Timeline and Supply Participation in the FCM Substitution Auction for details.
An SOI can be submitted for an import resource that is not associated with a multiyear contract that has previously cleared in the FCM.
There are four types of new import capacity resources:
Imports may be either:
A new import bundled with an ETU must have a valid interconnection request in place at the time of SOI submission. For details, see the Open Access Transmission Tariff (OATT), Schedule 25, Elective Transmission Upgrade Interconnection Procedures.
The SOI is due approximately 9 months before the FCA. Check the dates for the SOI submission window in the appropriate FCA calendar. (Learn how to access the auction calendars.)
When the SOI window is open, project sponsors can enter an SOI application via the Forward Capacity Tracking System (FCTS). (A digital certificate is required to access FCTS. Your Security Administrator for the ISO’s Customer and Assets Management System [CAMS] can provide this.)
To submit the SOI:
See the sample show of interest application form in Appendix C of Planning Procedure 10 (PP-10). The form for imports requests information including, but not limited to:
With each show of interest (SOI), the project sponsor must submit a refundable qualification process cost reimbursement deposit (QPCRD). The deposit is used for costs incurred by the ISO and its consultants, including affected transmission owners’ documented and reasonably-incurred costs associated with the qualification process.
Use the appropriate form available on the Financial Assurance and Credit page to set up payment for the QPCRD.
For the amount required, see the table in Market Rule 1, Section III.18.104.22.168, Qualification Process Cost Reimbursement Deposit.
The QPCRD is due after the close of the show of interest window. (Learn how to access the auction calendars.) The ISO will issue an invoice, usually in early May.
If the QPCRD is not received by the deadline, the project will be withdrawn.
The remaining balance of the QPCRD is returned:
If a project is denied qualification for the current CCP (CCPn) and does not carry over its SOI for the next CCP (CCPn+1), the QPCRD will be returned after the SOI window for the next CCP (CCPn+1).
The new capacity qualification package (NCQP) is the next major submittal after the show of interest (SOI) application.
The NCQP is a set of data, forms, applicable supporting documents and elections that collectively demonstrate the viability of a project.
The NCQP must be submitted in June four years before the beginning of the capacity commitment period. The submission window opens on the deadline for existing capacity qualification. For the specific window dates, learn how to access the auction calendars.
The NCQP must be submitted through the Forward Capacity Tracking System (FCTS). The ISO will not accept any submittal via email.
Screenshots with detailed instructions can be found in the “New Capacity Qualification Package” trainings available on the Training Materials webpage.
The project sponsor must complete each component of the NCQP as applicable. Once the documentation is submitted, the ISO may consult with the project sponsor to seek clarification, to gather additional necessary information, or to address questions or concerns that arise from the material submitted.
The information requested in the NCQP depends on your resource type. This information may include, but is not limited to, the following:
For more information on participating in the FCM with an ETU, see Planning Procedure 10.
Note: The ISO may seek additional information throughout the qualification process under the Market Rule 1, Section III.22.214.171.124.7 consultation provisions.
In order for an import to participate in prior CCPs it must have:
Multiyear contracts can only be submitted during the CCP associated with the FCA through future CCPs.
New capacity resources requesting to submit offers below the relevant ORTP must also submit with their NCQP sufficient documentation and information to permit the Internal Market Monitor to perform its review (details below). Recommended documents include but are not limited to the following:
The Internal Market Monitor (IMM) is responsible for ensuring the competitiveness of the FCM and other ISO New England markets by:
In the FCM, mitigation is performed by:
ORTPs are the default values applied to capacity seeking to participate in the upcoming auction and are set by the IMM at the lower end of the competitive range for a particular technology type.
An ORTP is assigned to a new capacity resource during the show of interest process. During the FCA, the ISO removes the resource’s offered quantity of megawatts once the threshold price has been reached. However, a market participant has the option of requesting a lower offer floor price by submitting documentation indicating why the new capacity resource requires less compensation from the FCM than resources of a similar category. (Recommended documentation is noted above.)
If a market participant requests an offer floor price below the ORTP, the IMM will review the submitted value and all associated documentation to determine if the requested value is a more accurate representation of the resource’s costs. The IMM may accept the requested lower value. However, if the IMM determines that the submission does not contain adequate information to support a price lower than the ORTP, the IMM will mitigate the offer up, capping the value at the ORTP. If the IMM determines that the requested value is not reflective of the resource’s true costs, the IMM will mitigate the offer to a price reflective of market conditions.
The final offer floor price after IMM review and any mitigation is provided in the qualification determination notification (QDN) of the resource, accessible in FCTS, along with an explanation for why the resource was mitigated.
For seven days after the QDNs are published, new import capacity resources that submitted a request for an offer floor price below the ORTP have the ability to reduce their submitted price through FCTS. Exceptions are new import resources either:
See Market Rule 1, Section III.126.96.36.199.7, Qualification Determination Notification for New Import Capacity Resources, for more information.
The pivotal supplier test for mitigation is applied to new import capacity resources that are not associated with an investment in the transmission system that increases the import capability to New England. The test determines whether a market participant has market power and the ability to impact price based on the size of their portfolio. Those resources with an active bid may have their active bid price changed based on the results. See Market Rule 1, Appendix A, Section III.A.5.2.1, Pivotal Supplier Test, regarding the performance and applicability of the test.
No later than 150 days before the Forward Capacity Auction, project sponsors must inform the ISO of any changes to their projects that may reduce their capacity.
However, material modifications may not be made. If they are necessary, the project shall be withdrawn.
Please contact ISO System Planning to discuss all potential changes.
See Market Rule 1, Section III.188.8.131.52.1, New Capacity Show of Interest Form.
To find out whether your resource is accepted for participation in the Forward Capacity Auction, check your qualification determination notification. Project sponsors can access these notifications through the Forward Capacity Tracking System (FCTS) no later than 127 days before the Forward Capacity Auction.
If your resource was not accepted, the notification will explain why.
If your resource was accepted, the notification will include:
The offer-review trigger price for participation in the auction (this is part of the separate determination made by the Internal Market Monitor)
A composite offer allows capacity resources that have each received a qualified capacity value participate together to maximize their combined offer in a Forward Capacity Auction (FCA).
Composite offers can be submitted during the composite offer window for the desired FCA. (Learn how to access the auction calendars.) Composite offers can be modified or withdrawn in the Forward Capacity Tracking System (FCTS) until the composite offer deadline.
Throughout the composite offer submittal process, FCTS will enforce various validation rules on partner eligibility:
Composite offers are submitted into the Forward Capacity Tracking System (FCTS) by selecting a specific new or existing resource. For new resources, select the New Qualification tab, then the Composite Offer tab:
For existing resources, select the Existing Qualification tab, then the Composite Offer tab:
The project sponsors for the summer and winter resources must then cooperate to complete the following steps by the deadline. Composite offers submitted after the deadline will not be considered in the FCA. Please note:
FCTS Actions Required by Each Partner
Initiate the composite offer in FCTS. The Composite Offer Status will display as “Pending.” Ask your winter partner to act.
Designate the winter resource to the composite offer. Status remains “Pending.” Ask your summer partner to act.
Submit the composite offer. Status displays “Confirmed.” Ask your winter partner to act.
Verify submission: both participating resources should appear under Winter Resource Information (MW). If they don’t, contact Customer Support.
Only the summer resource partner in a composite offer should bid in an FCA. Both resources do not need to bid in individually.
Note that the Peak Energy Rent mechanism is being eliminated. The capacity market payment adjustments associated with the PER mechanism will continue in place until the FCA 10 capacity commitment period, which begins on June 1, 2019. After that date, the PER mechanism would no longer apply.
The Forward Capacity Auction Qualified Capacity (FCA QC) is the amount of megawatts, as determined in the qualification process, that a resource is capable of providing in the summer and winter during a specific capacity commitment period. Resources must pay financial assurance based on the FCA QC.
Your FCA QC is available in the Forward Capacity Tracking System (FCTS).
A market participant may choose to cover its FCM obligations by using resources it owns or has contracted with. The contract or agreement usually takes place outside of the ISO marketplace. Designating capacity from a resource as self-supply allows a load-serving entity (LSE) to satisfy its capacity load obligation using resources owned or under contractual obligation of the LSE.
For all resources—new or existing—the lead market participant must designate a resource as self‐supplied no later than the date by which new resources are required to post their financial assurance for the same capacity commitment period. (Learn how to access the auction calendars.)
All self-supply designations are done through the Forward Capacity Tracking System (FCTS). The designation window opens after the ISO posts Market Information Server (MIS) reports on each load-serving entity’s projected share of the Installed Capacity Requirement.
Submitting a self-supply designation is a two-step process, which must be completed by the self-supply submittal deadline:
Throughout the designation process, FCTS will enforce various validation rules on eligibility:
New capacity resources are responsible for posting financial assurance on their FCA qualified capacity.
Use the appropriate form available on the Financial Assurance and Credit page to set up financial assurance payments.
Check the due date in the auction calendars. (Learn how to access the auction calendars.)
A new capacity resource that has been qualified to participate in a Forward Capacity Auction (FCA) for a given capacity commitment period (CCP) may elect critical path schedule (CPS) monitoring. CPS monitoring ensures the resource:
This CPS monitoring election is an annual election made by new capacity resources prior to the FCA. Check the due date in the auction calendars. (Learn how to access the auction calendars.)
Once made, this election is irrevocable. A change in the CPS milestones may result in a change in eligibility to participate in earlier CCPs’ reconfiguration auctions.
The election must be made through the Forward Capacity Tracking System (FCTS) under the New Qualification Elections tab during the CPS monitoring election window. As you make the election, you will be required to provide an update to the CPS that was submitted as part of the new capacity qualification package.
Forward Capacity Market participants should become familiar with the ISO’s market settlement and billing processes. See the FCM Settlements and Billing page for helpful resources.