On February 8, 2016, ISO-NE will hold is tenth Forward Capacity Auction (FCA). Power Advisory has just finalized its forecast of FCA #10 prices and released its public review of the Forward Capacity Market (FCM) fundamentals that will drive FCA prices. With significantly higher prices in FCA #8 and 9, the market is responding with proposals for numerous new gas plants, ranging from 100-MW combustion turbines to 900-MW combined cycle plants. Existing generators are working to squeeze a few more MWs out of their equipment, and owners of older plants are choosing to keep them in service rather than retire them. On the other hand, the Pay for Performance program is influencing some suppliers to reduce their participation in the auction, particularly where participation in the FCM has an opportunity cost.
Our public review of FCA #10 is available upon request by contacting John Dalton at email@example.com