Category Archives: Forward Capacity Market

CPES Policy Committee Update April 24, 2018

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by the CPES New Energy Professionals Team. If you are interested in learning more about the New Energy Professionals, the Policy Committee, or if you have ideas for future policy updates, we would welcome your input and feedback. Please send comments to Kathryn Dube, CPES Executive Director, via email: kdube@ctpower.org.

In this Update:

FERC Issues Final Rules to Improve Regional Market Transparency, Interconnections
Connecticut Water Confirms Receipt of Unsolicited Acquisition Proposal from Eversource Energy
Upcoming Training and Webinars from ISO-NE
FERC Initiates Notice of Inquiry Into Pipeline Certificate
Millstone “At Risk” Determination
PURA Docket No. 13-08-14RE04 established on April 18, 2018: PURA Development of the Administrative Processes and Program Specifications for Virtual Net Metering – Application Amendment

REGIONAL AND INDUSTRY DEVELOPMENTS

FERC INITIATES NOTICE OF INQUIRY INTO PIPELINE CERTIFICATE
The Federal Energy Regulatory Commission (FERC) launched an inquiry seeking information and stakeholder perspectives on whether and how to revise existing policies regarding the Commission’s review and authorization of interstate natural gas transportation facilities. For more information, see FERC’s website and the Notice of Inquiry.

FERC ISSUES FINAL RULE TO IMPROVE REGIONAL MARKET TRANSPARENCY, INTERCONNECTIONS
The Federal Energy Regulatory Commission (FERC) issued two final rules to improve transparency in organized electric power markets and make electricity interconnections more effective and efficient.

Transparency Final Rule: Addresses transparency regarding uplift payments, operator-initiated commitments and transmission constraint penalty factors in organized electric power markets. The rule requires regional market operators to report, on a monthly basis: total uplift payments for each transmission zone, broken out by day and uplift category; total uplift payments to each resource; and the commitment size, transmission zone, commitment reason, and commitment start time of each operator-initiated commitment. The rule also requires regional market operators to include in their tariffs the transmission constraint penalty factors used in their market software, the circumstances under which those factors can set locational marginal prices, and any processes by which they can be changed.
Generator Interconnection Procedures and Agreements Final Rule: Addresses reform of generator interconnection procedures and agreements for generators of more than 20 megawatts, and adopts reforms designed to improve certainty for interconnection customers, promote informed interconnection decisions and enhance the interconnection process.

CONNECTICUT WATER CONFIRMS RECEIPT OF UNSOLICITED ACQUISITION PROPOSAL FROM EVERSOURCE ENERGY
Connecticut Service, Inc. plans to continue with its merger with San Jose Water Group, despite a proposal from Eversource Energy earlier this month. Eversource announced Thursday that it sent a proposal to Connecticut Water to acquire its outstanding shares for $63.50 per share in cash. Shareholders would also have the option to receive the equivalent shares in Eversource in lieu of a monetary payment. Connecticut Water, headquartered in Clinton, said it received Eversource’s “non-binding, unsolicited” proposal and the company’s board of directors unanimously decided to decline it.

UPCOMING TRAINING FROM ISO-NE
Intermediate Wholesale Electricity Markets (WEM 201) May 15- 27, 2018. This three-day course provides an intermediate-level treatment of energy market concepts, including unit commitment, locational marginal pricing (LMP), reserve co-optimization, market interactions, settlement mechanics, and Financial Transmission Rights (FTRs).
PRD–Real-Time Operational Expectations, May 22, 2018 10:00 am. – 12:00 p.m. This webinar will focus on real-time operational expectations for demand response resources (DRRs) and demand designated entity (DDE) staff under price-responsive demand (PRD) effective on June 1, 2018. Topics include expectations for (1) response to normal and emergency dispatch instructions, (2) DRR real-time re-submittals, and (3) communications with ISO New England system operators.

ISO IS HOSTING TWO WEBINARS ON ITS FORWARD CAPACITY MARKETS
FCM New Capacity Qualification for Demand Resources, May 1, 2018, 10:00 a.m. – 12:00 p.m. This webinar will review the requirements associated with the submittal of the new capacity qualification package for demand resource projects requesting participation in the Forward Capacity Auction for the 2022-2023 Capacity Commitment Period (FCA #13).
FCM New Capacity Qualification for Generation and Imports, May 1, 2018, 1:30 – 3:30 p.m. This webinar will review the requirements associated with the submittal of the new capacity qualification package for generating and import capacity resource projects requesting participation in the Forward Capacity Auction for the 2022-2023 Capacity Commitment Period (FCA #13). It will also include a segment on import capacity resources with Elective Transmission Upgrades (ETU).

CONNECTICUT

MILLSTONE “AT RISK” DETERMINATION
Following the February decision under Executive Order 59 and June Special Session Public Act 17-3 by state regulators to allow nuclear plants to compete in an auction with new and existing solar, wind and hydropower energy producers for fixed-price contracts with state-regulated utilities. On April 4^th DEEP and PURA issued a notice of request for written comments on their proposed procedure and criteria for determining if a power generating facility is at “at risk.” Comments were due April 11 and a half dozen were filed. An article from New London Day summarized the comments, including those from Dominion, Eversource, and NRG Energy. According to DEEP and PURA’s notice, PURA proposed to initiate the “at risk” proceeding this April, with DEEP initiating an RFP proceeding before May 1.

PURA DOCKET ESTABLISHED ON APRIL 18, 2018

Docket No. 13-08-14RE04: PURA Development of the Administrative Processes and Program Specifications for Virtual Net Metering – Application Amendment

CONNECTICUT LEGISLATIVE SESSION
The 2018 Regular Session of the Connecticut General Assembly convened on February 7, 2018. General information about the Energy and Technology Committee is available at: https://www.cga.ct.gov/et

CPES Policy Committee Update: May 23, 2017

This week’s feature:

Integrating Markets and Public Policy (IMAPP) Discussions Continue on Potential Market Rule Changes

REGIONAL AND INDUSTRY DEVELOPMENTS

Integrating Markets and Public Policy (IMAPP) Discussions Continue

On May 17, 2017, market participants, state regulators, and other stakeholders continued discussions on potential market rule changes to integrate the region’s wholesale electricity markets with the public policy goals of the New England states (the IMAPP initiative). The meeting featured a presentation by ISO New England on a proposed approach that could be implemented in the near term. Conceptually, the ISO’s approach seeks to coordinate the entry of new subsidized clean energy resources with the retirement of existing capacity resources through the Forward Capacity Market (FCM). By doing so, the FCM can accommodate the entry of significant subsidized resources over time while maintaining competitively-based capacity prices for non-subsidized resources. The ISO’s approach is being referred to as Competitive Auctions with Subsidized Policy Resources or “CASPR.” A detailed discussion paper and highlights from the CASPR design approach are available on the ISO New England website.

For additional information, visit NEPOOL’s Integrating Markets and Public Policy website.

CONNECTICUT LEGISLATIVE UPDATE:

Information about the Energy and Technology Committee, including committee meetings and public hearings, is available at: https://www.cga.ct.gov/et/

The Energy and Technology Committee’s JF deadline was March 23, 2017. The list of bills reported out of the Energy and Technology Committee is available here and additional information about the status of these bills is available at this link.

CPES does not take a position on these legislative proposals; this is provided for informational purposes only to CPES members.

CPES Policy Committee Update: July 26, 2016

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by a team recently formed with support from CPES, known as the New Energy Professionals. If you are interested in learning more about the New Energy Professionals, the Policy Committee, or if you have ideas for future policy updates, we would welcome your input and feedback. Please send comments to Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

PURA Examines Time of Use Rates for Electric Vehicles
NEPOOL Announces Market and Policy Meeting For August 11, 2016
MA Legislation Seeks to Promote Energy Diversity
NY PSC Issues Moratorium on Retail Choice for Low-Income

Connecticut Public Utilities Regulatory Authority

Time of Use Rates for Electric Vehicles

PURA has opened a new docket seeking to investigate commercial and residential time of use rates for electric vehicles. Public Act 16-135 An Act Concerning Electric and Fuel Cell Electric Vehicles, amended Section 16-19f(b) of the General Statutes of Connecticut in part by requiring the PURA, no later than June 1, 2017, to “consider and determine whether it is appropriate to implement electric vehicle time of day rates for residential and commercial customers.” That statute also requires that the PURA’s consideration be made after public notice and hearing. This docket will be the administrative vehicle under which the PURA will conduct its investigation. A link to Docket No. 16-07-21 – PURA Investigation into the Implementation of Electric Vehicle Time of Day Rates for Residential and Commercial Customers is available here.

Regional & Industry Developments

New England Power Pool Wholesale Markets and State Public Policy Meeting Set for August 11, 2016

On August 11, 2016, the New England Power Pool (NEPOOL) is hosting a forum to discuss potential wholesale market design changes that would enable competitive markets to better accommodate state public policy objectives in New England. The meeting is intended to begin the solution identification process by hearing from stakeholders on potential ways to adjust wholesale power markets in order to achieve and accommodate the public policy objectives the New England states have identified. Potential solutions may include mechanisms market participants have advanced in the past, in other regions, or other ideas that have not yet been put forward.

Under the NEPOOL process, discussions will likely include further refinement of the problems to be solved and the objectives for those solutions. Public officials from all six New England states are planning to attend to listen and enhance their understanding of various means to achieve public policy objectives in future years.

For more information, visit the ISO’s Wholesale Markets and State Public Policy Initiative webpage.

NYPSC Issue Moratorium on Low-Income Choice

http://www.rtoinsider.com/nypsc-moratorium-esco-low-income-sign-ups-28861/

Legislative Affairs

MASSACHUSETTS LEGISLATION:

Information about the Joint Committee on Telecommunications, Utilities and Energy, including hearings and bills in committee, is available at: https://malegislature.gov/Committees/Joint/J37

There have been no recent developments relating to the following events that may be of interest to you:

On June 30, 2016, the Senate passed 2372 (An Act to promote energy diversity). On July 7, 2016, the House did not concur with the Senate amendments (H.4385: An Act to promote energy diversity) and a committee of conference was appointed. On July 8, 2016, the Senate insisted on its amendments and named members to the committee of conference.

CONNECTICUT LEGISLATION:

Information about the Energy and Technology Committee, including committee meetings and public hearings, is available at https://www.cga.ct.gov/et/

CPES Policy Committee Update: July 12, 2016

This week’s features:

PURA Reverses Position on Combined-Heat-And-Power (CHP) Facilities
ISO NE release guide for participation in Forward Capacity Market
The 2016 Connecticut regular session ended on May 4, 2016. We will continue to track any legislative items in Connecticut that may be of interest to you. In addition, we will begin tracking other state legislative actions in the region.

Connecticut Public Utilities Regulatory Authority

PURA reverses earlier decision on combined-heat-and-power (CHP) facilities

The Public Utilities Regulatory Authority (PURA) has issued a final decision reversing its earlier ruling regarding eligibility for combined-heat-and-power (CHP) facilities for certain distributed generation incentives. In response to a request for a declaratory ruling by Yale University, PURA had earlier ruled that repowered CHP facilities would not be eligible to receive distributed generation incentives as the facilities did not constitute “new” facilities eligible for the incentives under the statute. At the request of Yale University, additional CHP generators, and the Department of Energy and Environmental Protection, PURA reversed its earlier ruling, finding the repowered CHP facilities would serve an important role in Connecticut’s distributed energy portfolio. The PURA’s final decision is available at the following link.

Regional and Industry Developments

Updated ISO New England Forward Capacity Market (FCM) Participation Guide Available

ISO New England has released an updated version of its Forward Capacity Market (FCM) Participation Guide with information on how to complete processes associated with the FCM. The guide provides an overview of the capacity market, the qualification process, auction mechanics, post-auction processes for new resources, reconfiguration auctions and capacity supply obligation (CSO) bilateral periods, and options for temporarily or permanently removing capacity from the market.

Please visit the ISO Newswire for more information.

CONNECTICUT LEGISLATION: