Last update: 03/17/2025
Below, affected 快活app官网 (快活app官网-NE) participants can learn more about changes to existing systems or procedures related to the FCM Delivery FA project. This project is one of several that 快活app官网-NE has undertaken, in collaboration with stakeholders, for the continued development of the region’s wholesale electricity markets.
See Participant Readiness Project Outlook for more detail on specifically affected customers and systems for this and other major projects.
快活app官网-NE is updating the Forward Capacity Market (FCM) delivery Financial Assurance (FA) formula to reduce collateral shortfalls for Pay-for-Performance (PFP) penalties that generators are assessed if they fail to operate or underperform during long-duration capacity scarcity conditions (CSC). Beginning March 1, 2024, financial assurance calculations will include amounts resulting from the updated FCM delivery FA formula. A second phase of updates is planned for later in 2025.
In this first phase of the project, each of the FCM delivery FA factors below will be modified as follows:
Beginning with the 2025 - 2026 CCP, the 快活app官网 will perform a corporate liquidity assessment on each FCM participant holding a CSO (or its guarantor, if such guarantor is guaranteeing the payment of PFP penalties), to determine its ability to pay potential penalty payment obligations associated with its CSO within the applicable CCP, over a forward-looking rolling six months. Based on the results of such liquidity assessment, low- risk participants will continue to be subject to the current FCM Delivery Financial Assurance methodology and medium and high-risk participants will be subject to higher collateral requirements (risk adders), as they pose higher nonpayment risk to the market.
With the planned March 18, 2025 implementation, participants will see new “FCM Guarantees” and a “Liquidity Risk Assessment” sections in the Credit Limits tab of the Financial Assurance Management application (FAM).
With the planned May 1, 2025 implementation, a “Future Effective” Liquidity Adder line item and the full liquidity risk assessment details will be displayed.
Affected market participants are required to take specific steps or adapt to changes in 快活app官网-NE systems as described below, and should be mindful of additional time-bound items, some of which may require participants to take specific steps or adapt to changes in 快活app官网-NE systems both before and after the project implementation date.
| TIMING OR DEADLINE | SYSTEM | ACTION OR EVENT |
|---|---|---|
|
Phase I, release 1: February 13, 2024 |
FAM Sandbox |
Participants can test automated scripts and view the changes coming to the FCM Delivery FA Component on the Obligations Detail tab. |
|
Phase I, release 1: March 1, 2024 |
FAM Production |
First financial assurance run using the new calculation. FAM is updated with changes to the FCM Delivery FA Component drill-down. |
|
Phase I, release 2: April 18, 2024 |
FAM Sandbox |
Participants can test automated scripts and view the FCM Forward Looking Delivery FA line item and detail screen on the Obligations Detail tab. |
|
Phase I, release 2: May 21, 2024 |
FAM Production |
The FCM Forward Looking Delivery FA line item and detail screen are available on the Obligations Detail tab. |
|
Phase II, release 1: March 18, 2025 |
FAM Production |
FCM Guarantees and Liquidity Risk Assessment sections are visible on the Credit Limits tab. |
|
April 17, 2025 |
Mail / eMail |
Deadline for FCM Participants and their guarantors to submit guarantees, financial statements, and officer’s certifications to be in effect for the June 1, 2025, FCM FA calculation. |
|
Phase II, release 2: May 1, 2025 |
FAM Sandbox and Production |
First financial assurance run using the new calculation. The Future Effective Liquidity Adder line item is updated. Participants can test automated scripts and view the changes coming to the FCM Delivery FA Component on the Obligations Detail tab. |
|
June 1, 2025 |
FAM Production |
Values on the credit limits tab will no longer be “future effective”, and the FCM Guarantees and Liquidity Risk Assessment panels will show current data based on approved datasets. |
快活app官网 may offer online or classroom-based training, information sessions, and other opportunities for affected customers to learn about changes and ask questions in advance of project implementation.
| DATE | EVENT AND SUPPORTING MATERIALS |
|---|---|
|
2024 Q1 |
Quarterly Settlements Forum (QSF) |
|
February 12, 2024 |
Financial Assurance for the Forward Capacity Market (self-paced training) |
|
Currently available |
video |
Market participants affected by the project should consult the following documents for specific instructions on completing related tasks or processes and helpful answers to frequently asked questions.
| DOCUMENT | NOTES (if necessary) |
|---|---|
|
An introduction to performance incentives in the Forward Capacity Market (FCM); part of the online FCM Participation Guide |
| DOCUMENT | NOTES (if necessary) |
|---|---|
|
Section VII.A—FCM Delivery Financial Assurance |
|
|
Forward Capacity Market |
