Electricity shortfall means higher prices on way
ISO New England said the "forward capacity market," which is designed to cover future needs, wrapped up Monday with about 33,700 megawatts of the 33,855 megawatts of capacity required for 2017-18.
Prices are set through the capacity market developed from a 2006 settlement among market participants, the states and ISO New England, and approved by the Federal Energy Regulatory Commission.
The capacity clearing price of $15 per kilowatt-month will be paid in 2017-2018 to about 1,370 megawatts of new capacity resources. About 24,885 megawatts of existing resources will be paid $7.025/KW-month, according to ISO New England.
Dan Dolan, president of New England Power Generators Association, said the capacity auction indicated a classic example of supply and demand. The results are a clear signal to the marketplace to invest in additional resources and work to ensure reliability, Dolan said in a phone interview.
For his perspective, he said, everything should be on the table, from new investments to refurbishing existing facilities. He expects continued focus on price and availability of power generation.
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