FERC Approves First Steps in Improved Gas-Electric Market Coordination Efforts, For New England, Based on a Proposal of the Region’s Power Pool

摘要

Toward improving coordination between the natural gas and electric markets, FERC on April 24 approved a groundbreaking proposal from the New England Power Pool (NEPOOL) (ER13-895) to change electric market rules, moving up the timing of the day-ahead energy market (for securing electric generating capacity) in New England. An earlier day-ahead capacity market, the Commission believed, would offer the region’s independent system operator (ISO), ISO New England, Inc. (ISO-NE), “an increased opportunity to manage its system” by providing earlier clearing of capacity and issuance of its reserve adequacy analysis (RAA) earlier in the day. The earlier process would allow natural gas-fired generators to secure gas supplies from pipelines before bidding their electric generating capacity into the ISO capacity market, aiding New England’s electric reliability, especially in the winter.