FERC: Electric Power Markets - New England (ISO-NE)

Electric Power Markets: New England (ISO-NE)

2007 New England (ISO-NE) Electric Regions
		Overview Geography RTO/ISO Generation/Supply Demand Prices Focal Points Market Upgrades Connecticut Power Line Cold Snap Procedures

Overview

Geography

States covered:

Reliability region:

Balancing authority:

Load zones:

Hub:

RTO/ISO

Energy market: two-settlement (day ahead and real-time) spot market with locational marginal pricing (an internal hub, eight load zones and more than 500 nodes),
Interim mechanism for acquiring installed capacity,
Forward reserves market,
Regulation market, and
Financial transmission rights market.

Generation/Supply

Marginal fuel type:

Generating capacity (summer 2006):

Capacity reserve (summer 2006):

Reserve margin (summer 2006):

Demand

All time peak demand:

Peak demand growth:

	2004	2005	2006
Summer Peak Demand (MW)	24,116	26,885	28,127
Source: Derived from ISO-NE Data

Prices

Annual Average Price (RTO Day-Ahead Mass Hub)

2004:

2005:

2006:

2007:

Focal Points

Market Upgrades: In October 2006, the New England Independent System Operator (ISO-NE) enhanced its ancillary services market. It upgraded its forward reserve market to include a locational component to co-optimize the dispatch of energy and reserves and to allow demand resources to bid their resources directly into the energy and reserve markets. ISO-NE also implemented real-time pricing for regulation service.

Connecticut Power Line: Due to tight supplies and transmission constraints, southwestern Connecticut has higher congestion costs than other load zones. In summer 2006, as in previous summers, Connecticut had to use emergency resources to meet peak loads and reliability requirements. In October 2006, the Bethel-Norwalk 345-kV transmission line became operational. This line is a part of a two-phase project to improve reliability and increase import capacity for southwest Connecticut.

Cold Snap Procedures: Effective Dec. 8, 2006, the ISO implemented a set of procedures to be used during extreme winter weather conditions. Procedures include moving the operating day up by three hours; improving communication protocols and timelines for generators concerning fuel procurement; increasing coordination with the gas industry to ensure adequate pipeline availability; asking dual-fuel generators to switch to a non-gas fuel; and notifying load-response programs to be prepared to interrupt operations.