and they have been working for over a year to develop a reliability plan.
ISO New England does not have authority to require Vermont Yankee to operate without the appropriate permits and licenses, but it does have the responsibility to ensure a reliable power system. This responsibility requires the ISO to develop alternative solutions that will ensure reliability in the area of the power system that includes parts of Vermont, New Hampshire, and western and central Massachusetts beginning as early as March 2012 if Vermont Yankee can no longer operate.
These alternatives could include interim solutions such as emergency generation brought into Vermont temporarily, more expensive generation from outside Vermont, and demand-side resources. Long-term solutions would include transmission line upgrades as well as other possible solutions, such as private development of new generation, increased energy efficiency, and new sources of imported power. All these options will come at an additional cost. Vermont has little in-state generation apart from Vermont Yankee, which represents more than half of the generating capacity in the state. In 2009, Vermont’s peak consumer demand was 985 MW.
Forward Capacity Market Auction No. 4 – Final Results
The Forward Capacity Market has spurred investment in power system resources and encouraged significant growth of demand resources. The chart below shows that each auction concluded at the floor price with surplus capacity. The result has been lower, prorated capacity prices as well as the assurance that the region will have sufficient resources to meet demand.
Today’s filing with FERC reports that New England procured the 32,127 MW needed for reliability in the 2013 to 2014 time frame. The auction started at a price of nearly $9.84 per kilowatt-month (kW-month). The auction concluded at the floor price set for this auction of $2.95 per kW-month. Results show 32,247 MW of generating resources cleared the auction along with 3,261 MW of demand resources. These amounts include 144 MW of new generation and 515 MW of new demand-side resources. Approximately 5,374 MW of excess supply was remaining.
The Forward Capacity Market was developed by ISO New England, the six New England states, and industry stakeholders to promote investment in demand- and supply-side resources. New England’s capacity market design continues to be developed and enhanced; ISO New England expects to file briefs with FERC in September.
http://www.businesswire.com/news/home/20100830006350/en/Final-Capacity-Auction-Results-Surplus-Resources-2013%E2%80%932014