ISO-NE: First competitive solicitation for transmission under Order 1000 to be issued ‘late 2019 or early 2020’

ISO-NE said that it has released the draft RFP templates that will be used in competitive transmission solicitations

ISO New England (ISO-NE), in a July 10 “ISO Newswire” post said that it plans to issue in late 2019 or early 2020 its first competitive solicitation for transmission under FERC Order 1000 to address transmission needs caused by the retirement of the Mystic generating station in the mid-2020s.

Exelon, during the lead-up to the 13th Forward Capacity Auction, sought to retire the station, which is located just outside of Boston, in June 2022, ISO-NE said, adding that while it retained two of the Mystic units under rules that permit retentions for fuel-security reasons, the units will retire by June 1, 2024.

According to a Dec. 4, 2018 post, FERC that month issued an order accepting ISO-NE’s interim tariff changes to retain resources seeking retirement on the basis of fuel-security reliability need, with the changes to be in effect for the 13th, 14th, and 15th Forward Capacity Auctions, which run for capacity commitment periods 2022-2023, 2023-2024, and 2024-2025.

As noted in FERC’s December 2018 order, ISO-NE said that its revisions establish generally applicable provisions that allow for the retention of a resource for fuel security reasons, enable the use of a short-term cost-of-service agreement for such resources, provide for an ex ante cost allocation methodology, and address how such retained resources that utilize a cost-of-service option should be treated in the Forward Capacity Market.

ISO-NE, in its July 10 post, said that following the initial retirement request, it began studying whether the closure of the Mystic station would cause any transmission needs in the Greater Boston area through 2028, and that based on that study’s results, it has announced plans to issue its first request for proposals (RFP) under Order 1000.

ISO-NE also said that in preparation for issuing the Greater Boston RFP, it is proposing several minor refinements to its Transmission, Markets, and Services Tariff, which are being discussed at the Planning Advisory Committee and the NEPOOL technical committees before being field with FERC.

As noted on its website, that tariff details the rates, terms, and conditions for transmission, market, and other services provided by ISO-NE, as well as the rights and responsibilities of the ISO and market participants, and various schedules that define the revenues that the ISO collects for its operations and those of the New England States Committee on Electricity.

ISO-NE said in its July 10 post that it has released the draft RFP templates that will be used in competitive transmission solicitations.

A June 19 presentation titled, “Draft request for proposal template and cost review process,” noted, for instance, that a number of stakeholders have asked about the comparison of costs for proposals with and without caps and/or cost containment. The presentation noted that a normalized base case view will be developed along with a risk analysis that considers market and project-level risks.