There are three major changes coming soon in ISO New England (ISONE). Over the next few years participants can be prepared for more information on:

– Cost Allocation in the Forward Capacity Markets
– Energy Security Improvements
– A New Inventoried Energy Program

Cost Allocation Changes:
ISONE currently requires a blended monthly charge rate for the net regional clearing price (NRCP). The new cost allocation methodology will require participants to allocate costs for each capacity transaction individually. Adapt2 will work with ISO New England members to ensure these changes are proactively updates for ISO connectivity and reporting.

Energy Security Improvements:
ISONE will create several new, voluntary ancillary services in the day-ahead market and compensate for the flexibility of energy ‘on demand’ to better manage uncertainties for each operating day. In addition, energy call options will be procured in the day-ahead energy market to provide three new ancillary services:
– Generation Contingency Reserves (GCR)
– Replacement Energy Reserves (RER)
– Energy Imbalance Reserves (EIR)

Inventoried Energy Program:
Prior to winter months, resources in ISONE may elect to sell all or a portion of their energy inventory capability forward at a predetermined rate. A resource that sells forward must either maintain at least this inventoried energy quantity, or ‘buy out’ of its forward position at the spot rate during each trigger condition. This will help mitigate unexpected winter energy costs.

Adapt2 is closely working with our ISONE clients and monitoring the timelines of these changes. We will be proactively updating the Adapt2 platforms to ensure any member impacting changes are implemented.

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