NYISO’s Proposal to Constrain Market Power in New Capacity Zones Approved by FERC

A recent advisory from DWT partner Glenn Benson: On June 6, 2013, the Federal Energy Regulatory Commission (“FERC”) issued an Order conditionally accepting the New York Independent System Operator, Inc.’s (“NYISO”) proposal to implement buyer-side and supplier-side market power mitigation measures for monthly installed capacity (“ICAP”) spot markets in new capacity zones similar to measures currently in effect for New York City, effective Sept. 1, 2012, subject to certain conditions. The mitigation measures are intended to assure that market clearing capacity prices reflect competitive outcomes where particular buyers and/or sellers have both the ability and incentive to exercise market power. Read More