Step 1: Submit a Show of Interest (SOI)New resources that want to participate in the Forward Capacity Market (FCM) must submit documentation demonstrating the resource’s ability to operate at a specific megawatt value for the relevant capacity commitment period. 快活app官网 evaluates this information to confirm capacity.
The first step in qualifying a new resource is submitting a New Capacity Show of Interest (SOI) form with project information via the Forward Capacity Tracking System (FCTS).
Regarding substitution auction participation: Beginning with the February 2019聽 Forward Capacity Auction (FCA), new renewable, clean, zero carbon, or alternative resources that receive revenue from a government-regulated rate, charge, or other regulated cost recovery mechanism outside of 快活app官网 markets (sponsored policy resources) can elect to participate in a substitution auction. Be aware that some of the deadlines overlap with those for the primary auction. See the FCM Substitution Auction Overview and Timeline and Supply Participation in the FCM Substitution Auction for details.
An SOI can be submitted for an import resource not associated with a multiyear contract that has previously cleared in the FCM.
There are four types of new import capacity resources:
Imports may be either of the following:
A new import bundled with an ETU must have a valid interconnection request in place at the time of the SOI submission. For details, see the Open Access Transmission Tariff (OATT), Schedule 25, Elective Transmission Upgrade Interconnection Procedures.
The SOI is due approximately nine months before the FCA. Check the dates for the SOI submission window in the appropriate FCA calendar. (Learn how to access the auction calendars.)
When the SOI window is open, project sponsors can enter an SOI application via the FCTS. A digital certificate is required to access FCTS. Your security administrator for the 快活app官网’s Customer and Asset Management System (CAMS) can provide this.
The following video will walk you through how to submit a Show of Interest for Import Capacity Resources using the Forward Capacity Tracking System.
To submit the SOI for an Import Capacity Resource using the Apply to Next CCP functionality:
Note: This is the preferred manner for creating a new SOI for a previously accepted Import Capacity Resource when the Import Capacity Resource will remain backed by the same external assets (or a subset thereof) and no other facility modifications have been made (where applicable).聽This method ensures that the same Resource ID and project data associated with that Resource ID will be carried forward to the new SOI. Otherwise, the project sponsor should create a new Import Capacity Resource using a New Import SOI.
The following video will walk you through how to submit a Show of Interest for Import Capacity Resources in the Forward Capacity Tracking System using data from a prior capacity commitment period.
See the sample SOI application form. The form for imports requests information including, but not limited to, the following:
Note: The following offer review trigger price (ORTP) groups are the only ones applicable for imports:
With each show of interest (SOI), the project sponsor must submit a refundable qualification process cost reimbursement deposit (QPCRD). The deposit is used for costs the 快活app官网 and its consultants incur, including affected transmission owners’ documented and reasonably incurred costs associated with the qualification process.
Use the appropriate form available on the Financial Assurance and Credit page to set up payment for the QPCRD.
For the amount required, see the table in Market Rule 1, Section III.13.1.9.3, Qualification Process Cost Reimbursement Deposit.
The QPCRD is billed as a line item on the Non-Hourly invoice issued by the 快活app官网 typically in May after the close of the SOI window. If payment is not received by the 快活app官网 by the invoice due date, the project will be withdrawn.
The remaining balance of the QPCRD is returned under the following conditions:
With the exception of QPCRD returns for achieving FCM commercial operation, all returns will be processed twice per year during May (following the close of the SOI submission window) and November (following the completion of the new capacity qualification process).
The new capacity qualification package (NCQP) is the next major submittal after the show of interest (SOI) application.
The NCQP is a set of data, forms, supporting documents, and elections that collectively demonstrate the viability of a project.
The NCQP must be submitted in June four years before the beginning of the capacity commitment period. The submission window opens on the deadline for existing capacity qualification. For the specific window dates, learn how to access the auction calendars.
The NCQP must be submitted through the Forward Capacity Tracking System (FCTS). The 快活app官网 will not accept any submittal via email. The following videos will walk you through how to submit a new capacity qualification package:
For Resources Backed by a Control Area:
For Resources Backed by an Existing External Resource:
For Resources Backed by Single External New Resource:
Screenshots with detailed instructions can be found in the “New Capacity Qualification Package” training modules available on the Training Materials webpage.
The project sponsor must complete each component of the NCQP as applicable. Once the documentation is submitted, the 快活app官网 may consult with the project sponsor to seek clarification, to gather additional necessary information, or to address questions or concerns that arise from the material submitted.
The information requested in the NCQP depends on your resource type. This information may include, but is not limited to, the following:
For more information on participating in the FCM with an ETU, see 快活app官网 Planning Procedure No.10.
Note: The 快活app官网 may seek additional information throughout the qualification process under the Market Rule 1, Section III.13.1.1.2.7 consultation provisions.
Imports must have the following to participate in prior CCPs:
Multiyear contracts can only be submitted during the CCP associated with the FCA through future CCPs.
New capacity resources requesting to submit offers below the relevant ORTP must also submit with their NCQP sufficient documentation and information to permit the Internal Market Monitor to perform its review (details below). Recommended documents include, but are not limited to, the following:
Please note, all imports other than those associated with an ETU (which have a 20-year outlook), are required to provide a one-year outlook on costs and revenues from outside control areas to calculate the price to come to 快活app官网-NE.
The Internal Market Monitor (IMM) is responsible for ensuring the competitiveness of the FCM and other 快活app官网 markets through the following activities:
In the FCM, mitigation is performed by these actions:
ORTPs are the default values applied to capacity seeking to participate in the upcoming auction, which the IMM sets at the lower end of the competitive range for a particular technology type.
An ORTP is assigned to a new capacity resource during the show of interest process. During the FCA, the 快活app官网 removes the resource’s offered quantity of megawatts once the threshold price has been reached. However, a market participant has the option of requesting a lower offer floor price by submitting documentation indicating why the new capacity resource requires less compensation from the FCM than resources of a similar category. (Recommended documentation is noted above.)
The IMM will review market participant requests for an offer floor price below the ORTP and all associated documentation to determine if the requested value is a more accurate representation of the resource’s costs. The IMM may accept the requested lower value. However, if the IMM determines that the submission does not contain adequate information to support a price lower than the ORTP, the IMM will mitigate the offer up, capping the value at the ORTP. If the IMM determines that the requested value is not reflective of the resource’s true costs, the IMM will mitigate the offer to a price reflective of market conditions.
The qualification determination notification (QDN) of the resource provides the final offer floor price after IMM review and any mitigation. QDNs are accessible in the FCTS along with an explanation for why the resource was mitigated, if applicable.
For seven days after the QDNs are published, new import capacity resources that submitted a request for an offer floor price below the ORTP can reduce their submitted price through the FCTS. Exceptions are new import resources that are either of the following:
For more information, see Market Rule 1, Section III.13.1.3.5.7, Qualification Determination Notification for New Import Capacity Resources.
The pivotal supplier test for mitigation is applied to new import capacity resources not associated with an investment in the transmission system that increases the import capability to New England. The test determines whether a market participant has market power and could impact price on the basis of its portfolio size. The test results may lead to a change in the active bid price for a resource with an active bid. For more information on the performance and applicability of the test, see Market Rule 1, Appendix A, Section III.A.23 Pivotal Supplier Test for Existing Capacity Resources and New Import Capacity.
No later than 150 days before the Forward Capacity Auction, project sponsors must inform the 快活app官网 of any changes to their projects that may reduce their capacity.
However, material modifications may not be made. If they are necessary, the project will be withdrawn.
Please contact 快活app官网 System Planning to discuss all potential changes.
To find out whether your resource is accepted for participation in the Forward Capacity Auction, check your qualification determination notification. Project sponsors can access these notifications through the Forward Capacity Tracking System (FCTS) no later than 127 days before the Forward Capacity Auction.
If your resource was not accepted, the notification will explain why.
If your resource was accepted, the notification will include the following information:
A composite offer allows capacity resources that have each received a qualified capacity value to participate together to maximize their combined offer in a Forward Capacity Auction.
Composite offers can be submitted during the composite offer window for the desired FCA. (Learn how to access the auction calendars.) Composite offers can be modified or withdrawn in the Forward Capacity Tracking System (FCTS) until the composite-offer deadline.
Throughout the composite offer submittal process, the FCTS will enforce various validation rules on partner eligibility:
Composite offers are submitted into the FCTS by selecting a specific new or existing resource. For new resources, select the New Qualification tab, then the Composite Offer tab:
For existing resources, select the Existing Qualification tab, then the Composite Offer tab:
The project sponsors for the summer and winter resources must then cooperate to complete the following steps by the deadline. Composite offers submitted after the deadline will not be considered in the FCA. Please note:
FCTS Actions Required by Each Partner |
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Summer resource |
Winter resource |
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Initiate the composite offer in the FCTS. The Composite Offer Status will display as “Pending.” Ask your winter partner to act. |
1 |
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2 |
Designate the winter resource to the composite offer. Status remains “Pending.” Ask your summer partner to act. |
Submit the composite offer. Status displays “Confirmed.” Ask your winter partner to act. |
3 |
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Verify submission: Composite Offer Status should display “Confirmed” and both participating resources should appear under Winter Resource Information (MW). If they don’t, contact Participant Support. |
4 |
Verify submission: Composite Offer Status should display “Confirmed” under the Composite Offer Winter Resource Details window. If it doesn’t, Step 3 has not been completed. Ask your summer partner to act. |
Only the summer resource partner in a composite offer should bid in an FCA. Both resources do not need to bid individually.
The Forward Capacity Auction Qualified Capacity (FCA QC) is the amount of megawatts, as determined in the qualification process, that a resource is capable of providing in the summer and winter during a specific capacity commitment period. Resources must pay financial assurance based on their FCA QC.
Your FCA QC is available in the Forward Capacity Tracking System (FCTS).
Learn about qualified capacity for reconfiguration auctions and capacity supply obligation bilateral periods.
A market participant may choose to cover its FCM obligations by using resources it owns or has contracted with. The contract or agreement usually takes place outside the 快活app官网 marketplace. Designating capacity from a resource as self-supply allows a load-serving entity (LSE) to satisfy its capacity load obligation using resources owned or under contractual obligation of the LSE.
For all resources—new or existing—the lead market participant must designate a resource as self鈥恠upplied no later than the date new resources are required to post their financial assurance for the same capacity commitment period. (Learn how to access the auction calendars.)
All self-supply designations are done through the Forward Capacity Tracking System (FCTS). The designation window opens after the 快活app官网 posts Market Information Server (MIS) reports on each LSE’s projected share of the Installed Capacity Requirement.
The steps to submit a self-supply designation, which must be completed by the self-supply submittal deadline, are as follows:
Throughout the designation process, the FCTS will enforce various validation rules on eligibility:
New capacity resources are responsible for posting financial assurance on their FCA qualified capacity.
Use the appropriate form available on the Financial Assurance and Credit page to set up financial assurance payments.
Check the due date in the auction calendars. (Learn how to access the auction calendars.)
A new import capacity resource that has been qualified to participate in a Forward Capacity Auction (FCA) for a given capacity commitment period (CCP) may elect critical path schedule (CPS) monitoring. CPS monitoring ensures the following for the resource:
This CPS monitoring election is an annual election made by new capacity resources before the FCA. Check the due date in the auction calendars. (Learn how to access the auction calendars.)
Once made, this election is irrevocable. A change in the CPS milestones may result in a change in eligibility to participate in earlier CCPs’ reconfiguration auctions.
The election must be made through the Forward Capacity Tracking System (FCTS) under the New Qualification Elections tab during the CPS monitoring election window. As you make the election, you may be required to provide an update to the CPS submitted as part of the new capacity qualification package.
Forward Capacity Market participants should become familiar with the 快活app官网’s market settlement and billing processes. See the FCM Settlements and Billing page for helpful resources.
