ISO New England Releases FCM Capacity Cost Allocation Estimates Report

ISO New England said in a market notice that, a new report, which the ISO said may assist market participants with their estimations of Forward Capacity Market monthly cost allocations to load obligation starting in the 2022-2023 capacity commitment period, is now available on the ISO New England (ISO) website.

ISO New England noted that the results of the thirteenth FCA, which is associated with the 2022-2023 capacity commitment period (FCA 13), have not been accepted by FERC yet, and, accordingly, they are not final.

The ISO stressed that it is posting this report in advance of a FERC order on FCA 13 for informational purposes, and in response to market participants' requests. The ISO will not be liable for market participants' use of or reliance on this report.

The report includes a further disclaimer: "This report is designed to assist participants in estimating future Forward Capacity Market monthly cost allocations to load obligation. The report uses historical and estimated data (which may not be accurate and which in many cases will change before the capacity commitment period) to forecast charge-rates for the FCM. THE FORECASTED CHARGE-RATE VALUES ARE ESTIMATES ONLY AND WILL NOT EQUAL THE FINAL EFFECTIVE CHARGE-RATE VALUES THE ISO USES TO SETTLE THE CAPACITY COMMITMENT PERIOD."

This cost allocation forecast will be updated after the release of the results of each annual reconfiguration auction.

The report is available on the ISO-NE website here, under the posting title is "2022-2023 CCP FCM Forecasted Cost Allocation" (scroll down on the ISO-NE page)

For the 2022-2023 capacity commitment period, this report reflects the cost allocation methodology and replaces the FCM Net Regional Clearing Price report. The FCM Forecasted Net Regional Clearing Price reports for the 2020-2021 and 2021-2022 capacity commitment periods are maintained on the ISO-NE website, and continue to reflect the cost allocation forecast estimates for those capacity commitment periods.