Pierce Atwood LLP's
Energy Practice Group
Pierce Atwood's Energy Practice Group is a team of seasoned and knowledgeable attorneys with extensive experience in virtually all aspects of federal and state utility regulation, the purchase and sale of power plants, the buying and selling of power, and energy project development. Our attorneys frequently represent clients in various proceedings before FERC, state regulatory agencies, and federal and state trial and appellate courts. The firm represents regulated electric utilities, gas utilities, buyers and sellers of energy, hydropower facilities, independent power plant owners and developers, and regulators.
Although based in Maine, the Energy Practice
Group has developed a regional and national reputation, and our growing international practice assists clients with transactions throughout the world from North America to South America,
Asia, Africa, and Europe.
For more information , please contact any of the following:
John Gulliver at (207) 791-1296 jgulliver@pierceatwood.com
Deborah Shaw at (207) 791-1252 dshaw@pierceatwood.com
William Hewitt at (207) 791-1337 whewitt@pierceatwood.com
Jared des Rosiers at (207) 791-1390 jdesrosiers@pierceatwood.com
Robert Creamer at 207-791-1322 rcreamer@pierceatwood.com
Pierce Atwood LLP
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Portland, ME 04101
114 North Main Street
Concord, NH 03301 http://www.pierceatwood.com
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December 12, 2006
APPLICATIONS TO PARTICIPATE IN ISO CAPACITY AUCTIONS
DUE DECEMBER 31, 2006
ISO New England is beginning to implement its forward capacity market
(“FCM”), which is designed to replace the locational installed capacity system
(“LICAP”) as a way to meet the region’s increasing demand for electricity. In contrast to LICAP, under which the ISO would have determined the amount of capacity payments to generators, the FCM will result in capacity payments being set by a competitive auction process.
Beginning in 2008, the ISO will create annual forecasts of New England’s capacity needs for the next three years. The ISO will then conduct a yearly auction to secure the capacity required to meet those needs, allowing generators to bid the number of kilowatt hours they are willing to supply at an initial bidding price set by the ISO. If the amount of capacity bid exceeds the forecasted need, the price will be lowered and generators will re-bid until the two amounts are equal. Generators may commit capacity from existing resources for a year, while capacity from new resources may be committed for up to five years, in order to help guarantee a return for investments in new capacity. New capacity includes:
(1) new generation; (2) new distributed generation greater than 5 MW; (3) new imports; and (4) certain incremental new capacity from existing resources.
The first auction is scheduled for February of 2008, and is intended to secure the capacity the ISO anticipates will be needed beginning June 1, 2010. Any generator wishing to bid the capacity from a new capacity resource must complete and submit the ISO’s “New Capacity Show of Interest” application by December
31, 2006. Any new resources that are to be bid must be available and ready to operate by June of 2010, and must meet several reporting and financial requirements.
The ISO will announce the deadline for submitting “Show of Interest” applications for existing capacity resources at a future date.
For more information, please contact:
Deborah Shaw, 207-791-1252, dshaw@pierceatwood.com
John Gulliver, 207-791-1296, jgulliver@pierceatwood.com