Carissa P. Sedlacek

Carissa P. SedlacekM A N A G E R , R E S O U R C E A N A L Y S I S A N D I N T E G R A T I O N

Reliability Committee Meeting

Forward Capacity Auction #7 (FCA #7) Results Summary

M A R C H 1 9 , 2 0 1 3 | W E S T B O R O U G H , M A

2

Highlights

• The seventh Forward Capacity Auction (FCA #7) was held February 4-5, 2013 and successfully procured resources to satisfy the region’s Installed Capacity Requirement (ICR) for the 2016/2017 Capacity Commitment Period (CCP)

• Approximately 38,573 MW of qualified resources competed to provide the needed 32,968 MW of capacity (Net ICR)

• The NEMA/Boston Capacity Zone cleared at $14.999/kW-month for new resources (721 MW) and $6.661/kW-month for existing resources (2,537 MW) due to insufficient competition

• Less Active Demand Response resources cleared in FCA #7 than previous FCAs

• A total of 268 de-list bids (approximately 1,560 MW) were reviewed and all were accepted

• The ISO filed results of FCA #7 with FERC on February 26, 2013

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FCA #7 Overview

• There were seven rounds in which Participants could submit bids and offers

• Starting price was $15.000/kW-mo

• Ending price was $3.15/kW-mo

• Cleared MW will receive a prorated payment of $3.129/kW-mo unless they elect to prorate their MW obligation

• Proration was completed on February 25 and all resources that elected proration were allowed to prorate– No proration was allowed in the NEMA/Boston Capacity Zone– CT resources will receive a prorated price of $2.883/kW-month – Resources in the ME and ROP capacity zones will receive a prorated price of

$2.744/kW-month

• FCA #7 results FERC Filing made on February 26 is available at: http://www.iso-ne.com/regulatory/ferc/filings/2013/feb/index.html

http://www.iso-ne.com/regulatory/ferc/filings/2013/feb/index.html

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FCA #7 Details

• The Installed Capacity Requirement was 34,023 MW – After accounting for 1,055 MW of Hydro Quebec Interconnection Capability

Credits, 32,968 MW remained to be procured– Local Sourcing Requirement for NEMA/Boston was 3,209 MW and CT was 7,603

MW, respectively. The Maximum Capacity Limit for the ME export-constrained zone was 3,709 MW

• Approximately 38,573 MW of resources qualified to participate in FCA #7– Qualified Existing Resources (35,117 MW)

• 31,585 MW of Generating Capacity, including Intermittent*• 112 MW of Import Capacity• 3,419 MW of Demand Resources

– Qualified New Resources (3,456 MW)• New Generating Capacity Resources (878 MW)• New Demand Resources (255 MW)• New Import Resources (2,323 MW)

* Includes new RTEG and Significant Increase which receives existing treatment in the auction

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FCA #7 Details, cont.

• Approximately 36,220 MW (uncapped by Maximum Capacity Limit (MCL) and Real-Time Emergency Generation (RTEG)) remained at the floor price

• Existing Resources (33,457 MW)*– 30,594 MW of Existing Supply Resources

• 30,841 MW of Generating Capacity, including Intermittent*• 112 MW of Import Capacity

– 2,503 MW of Existing Demand Resources

• New Resources (2,763 MW)– New Supply Resources (2,518 MW)

• 800 MW Generating Capacity• 1,718 MW of Import Capacity**

– New Demand Resources (245 MW)

• There was no need to “cap” the amount of RTEG that cleared the auction because only 262 MW cleared

* Accounts for Non-Price Retirements . Also includes Significant Increase projects and new RTEG that receives existing treatment

** Capped by Interface Limits

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New Capacity Resources by State

Demand Resources*245 MW**

Generation800 MW

* Includes 8% T&D Gross-up and new RTEG** Sums may not add due to rounding

Connecticut26%

Massachusetts49%

Maine7%

New Hampshire4%

Rhode Island7%

Vermont7%

MA100 %

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New Demand Resources by Type 245 MW Total

Includes approximately 243 MW of New Energy Efficiency Projects

On Peak70.17%

Real-Time Demand Response

0.09%

Real-Time Emergency Generation

0.28%

Seasonal Peak29.46%

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New Generation by Type800 MWs Total

Combined Cycle84%

Hydraulic Turbine6%

Photovoltaic0%

Wind Turbine9%

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Trends in New Capacity Resources

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Cleared Real-Time Demand Response

2012-13 2013-14 2014-15 2015-16 2016-170

200

400

600

800

1,000

1,200

1,400

1,600

1,1481,253

1,469 1,508

1,337

1,096 1,106

1,3401,319

854

FCA Qualified Capacity FCA Cleared Capacity

Meg

awatt

s

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Cleared Real-Time Emergency Generation

2012-13 2013-14 2014-15 2015-16 2016-170

200

400

600

800

1,000

1,200

835

961915

837

488

630688

722

617

262

FCA Qualified Capacity FCA Cleared Capacity

Meg

awatt

s

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FCA #7 De-list Bid Details

• A total of 268 de-list bids (approximately 1,560 MW) were reviewed from resources in all six New England states– Static De-List Bids were submitted prior to the auction, at prices

greater than 0.8 X Cost of New Entry (CONE), from five resources (approximately 13 MW) and all were accepted

– Additional Static De-List Bids were submitted by the ISO at 2*CONE on behalf of the Participant due to the inability to qualify winter MW (“low winter flag”)• Submitted for 62 resources (approximately 246 MW) and all cleared

– There were 201 Dynamic De-List Bids (approximately 1,301 MW) were submitted during the auction at prices less than 0.8 X CONE (or below $4.844/kW-mo), all were accepted

• There was one administrative export de-list bid (100 MW)

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Approved De-list Bids by State1,660 MW Total*

*Includes Static, Dynamic, and Administrative Export de-list bids

CT42%

MA36%

ME9%

NH5%

RI5%

VT3%

(703 MW)

(44 MW)(77 MW)

(89 MW)

(146 MW)

(601 MW)

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GEN45%

RTDR29%

RTEG14%

On-Peak6%

Seasonal-Peak6%

Approved De-list Bids by Resource Type1,660 MW Total*

*Includes Static, Dynamic, and Administrative Export de-list bids

(100 MW)

(226 MW)

(744 MW)

(107 MW)

(483 MW)

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FCA #1 FCA #2 FCA #3 FCA #4 FCA #5 FCA #6 FCA #70

500

1,000

1,500

2,000

2,500

3,000

DR Generator Import

Megawatts

Trends in De-list Bids Submitted

79 MW Rejected604 MW

Rejected

1,191 MW Rejected581 MW

Rejected

0 MW Rejected

330 MW Rejected

Note: Current status of de-list bids retained for reliability is available at: http://www.iso-ne.com/markets/othrmkts_data/fcm/doc/index.html

0 MW Rejected

http://www.iso-ne.com/markets/othrmkts_data/fcm/doc/index.html

Reliability Committee Meeting

Forward Capacity Auction #7 Results Summary – Appendix

M A R C H 1 9 , 2 0 1 3 | W E S T B O R O U G H , M A

17

Summary of Auction Rounds withExcess Supply and Price Changes

1Capped by Import Interface Limits and MCL

Round Start Price End Price Delta $ Excess Start1 Excess End1 Delta MW

1 15 9 6 4,502 4,430 72.26

2 9 7.5 1.5 4,430 4,430 0

3 7.5 6 1.5 4,430 4,321 109.4

4 6 4.844 1.156 4,321 4,221 99.92

5 4.844 4.541 0.303 4,221 3,128 1093

6 4.541 3.845 0.696 3,128 3,056 71.5

7 3.845 3.15 0.695 3,056 3,048 7.897

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System-wide Results of FCA #7Price at end of auction:

$3.150/kW-Mo(Floor price)

*NEMA/BSTN: $14.999/kW –Mo (New)

Resources Capped by RTEG

N/A

Need in 2016 (NICR):

32,968 MW

Effective Payment Rate ($/kW-Mo):

ROP/Maine: $2.744/kW- MoCT: $2.883 /kW- Mo

NEMA/BSTN: $14.999 /kW- Mo (New)

Price at beginning of auction:

$15.00/kW-Mo

New Resources:3,456MW

Existing Resources:35,117 MW

Demand: 255 MW

Generating:31,585MW

Imports:112 MW

Imports:2,323 MW

Demand:3,419 MW

Generating:878 MW

Excess Capacity:N/A

(Total cleared minus net ICR capped by

RTEG)

Qualified Resources Entering the Auction:

38,573 MWResources cleared

(uncapped) :36,220 MW

ROP 19,505 MWNEMA/BSTN 3,754 MWConnecticut 9,082 MWMaine 3,796 MWImport 2,435 MW

ROP 18,660 MW $2.744/kW-Mo*NEMA/BSTN 3,716MW $14.999/kW-MoConnecticut 8,372 MW $2.883/kW-MoMaine 3,642MW $2.744 /kW-MoImport 1,830MW $2.744/kW-Mo

Existing:30,841 MW

New:800 MW

On Peak 1,320 MWSeasonal Peak 312MWReal Time 854 MWReal Time EG 262 MW

Demand Resources:2,748 MW

Import: 0 MW

Demand: 916 MW

Generating: 744 MW

MW from existing resources requesting

to de-list 1,660 MW

Rejected:0 MW

Approved: 1,660 MW

Import: 0 MW

Demand: 0 MW

Generating: 0 MW

*Insufficient Competition Triggered Existing Resources payment rate = $6.66/kW Mo

Generating Resources:31,641 MW

Import Resources:1,830 MW

Existing:2,503 MW

Existing:112 MW

New:245 MW

New:1,718 MW

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Maine Results FCA #7

New Resources:

334 MW

Existing Resources:3,771MW

Demand: 26 MW

Generating:3,271 MW

Imports:0

Imports:308

Demand:500 MW

Generating:0 MW


4,104 MW

Resources cleared (uncapped) in the auction

at auction end:3,950 MW

Existing:3,188 MW

New:0 MW

On Peak 162 MWSeasonal Peak 0 MWReal Time 281 MWReal Time EG 12 MW

Demand Resources:

454 MW

Import: 0 MW

Demand: 63 MW

Generating: 83MW


to de-list 146 MW

Rejected:0 MW

Approved: 146 MW

Import: 0 MW

Demand: 0 MW

Generating: 0 MW


Import Resources:

308 MW

Existing:437 MW

Existing:0 MW

New:17 MW

New:308 MW

Results at a GlanceNeed 3,709 MW Qualified 4,104 MW

Price @ Start $15.00/kW-Mo Price @ end $3.150/kW-Mo (floor)

Uncapped 3,950 MW RTEG Capped N/A

Excess 241 MW Payment Rate 2.744/kW-Mo

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NEMASS/Boston Results FCA #7

New Resources:

721 MW

Existing Resources:3,033MW

Demand: 47 MW

Generating:2,557 MW

Imports:N/A

Imports:N/A

Demand:476 MW

Generating:674 MW


3,754 MW



Existing:2,537 MW

New:674 MW


Demand Resources:

505 MW

Import: MW

Demand: 17 MW

Generating: 21 MW


to de-list 38 MW

Rejected:0 MW

Approved: 38MW

Import: 0 MW

Demand: 0 MW

Generating: 0 MW


Import Resources:

0 MW

Existing:458 MW

Existing:0 MW

New:47 MW

New:0 MW

Results at a GlanceNeed 3,209 MW Qualified 3,754 MW

Price @ Start $15.00/kW-Mo Price @ end $14.999/kW-Mo (New)

6.665/kW-Mo (Existing)


Excess 507 MW Payment Rate $14.999/kW-Mo (New)6.665/kW-Mo (Existing

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Connecticut Results FCA #7

New Resources:

70 MW


Demand: 63 MW

Generating:8,042 MW

Imports:0

Imports:0

Demand:970 MW

Generating:7 MW


9,082 MW


at auction end:8,371MW

Existing:7,694 MW

New:0 MW


Demand Resources:

677 MW

Import: MW

Demand: 355 MW

Generating: 348 MW


to de-list 703 MW

Rejected:0 MW

Approved: 703 MW

Import: 0 MW

Demand: 0 MW

Generating: 0 MW


Import Resources:

0 MW

Existing:614 MW

Existing:0 MW

New:63 MW

New:0 MW

Results at a GlanceNeed 7,603 MW Qualified 9,082MW



Excess 760 MW Payment Rate $2.883/kW-Mo

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Rest of Pool Results FCA #7

New Resources:2,332 MW


Demand: 119 MW

Generating:17,714 MW

Imports:112

Imports:2,015

Demand:1,474 MW

Generating:197 MW


21,633MW



Existing:17,422 MW

New:126 MW


Demand Resources:1,112 MW

Import: 0 MW

Demand: 481 MW

Generating: 292 MW


to de-list 773 MW

Rejected:0 MW

Approved: 773 MW

Import: 0 MW

Demand: 0 MW

Generating: 0 MW


Import Resources:1,522 MW

Existing:994 MW

Existing:112 MW

New:118 MW

New:1,410 MW

Results at a GlanceNeed N/A Qualified 21,633MW


Uncapped 20,191 RTEG Capped N/A

Excess N/A Payment Rate 2.744/kW-Mo

Documents

Carissa P. Sedlacek