FERC Accepts ISO-NE Potential New Boundaries for Capacity Zones

FERC accpeted a filing from ISO New England that identifies two potential new boundaries for Capacity Zones for ISO-NE’s tenth Forward Capacity Auction (FCA 10).

The filing represents the first step in a two-step process for modeling a new Capacity Zone in an FCA. With FERC approval, the ISO will move to the second step, under which the objective criteria specified in the ISO-NE Tariff section III.12.4(b) will be used to determine whether the potential zones will be modeled as separate Capacity Zones in FCA 10.

The outcome of that determination will be addressed in a pre-FCA informational filing made by ISO-NE pursuant to its Tariff section III.13.8.1(a) to be filed early November 2015.

ISO-NE previously modeled the following four Capacity Zones in the ninth FCA (FCA 9), held in February 2015 for the 2018-2019 Capacity Commitment Period: Northeastern Massachusetts /Boston (NEMA/Boston), Southeast Massachusetts/Rhode Island (SEMA/Rhode Island), Connecticut, and Rest-of-Pool. The Rest-of-Pool Capacity Zone includes West/Central Massachusetts, Vermont, and New Hampshire.

In the filing approved by FERC, ISO-NE proposed two new potential Capacity Zones. One of the new potential Capacity Zones is a combination of the existing NEMA/Boston Capacity Zone and the SEMA/Rhode Island Capacity Zone (collectively, Southeastern New England Capacity Zone, or SENE). The other potential new Capacity Zone is a combination of the existing Maine, New Hampshire and Vermont Load Zones (together, Northern New England Capacity Zone).

ISO-NE stated that the SENE Capacity Zone is proposed to be an import-constrained capacity zone, while the Northern New England Capacity Zone is proposed to be an export-constrained Capacity Zone. ISO-NE explains that there are no changes to the boundaries associated with the West/Central Massachusetts or Connecticut portions of the system.

ER15-1462