Client Alert

New England Forward Capacity Market: A Strongly Supported Settlement With Long Run Risk

March 24, 2006

Chuck Patrizia and Bill Scharfenberg

On March 6, 2006, a Settlement Agreement was submitted to the Federal Energy Regulatory Commission that, if approved, would establish a new Forward Capacity Market, administered by ISO New England Inc. This FCM is the proposed vehicle for acquiring sufficient capacity to meet New England’s load long term, but will it be able to attract and retain needed new capacity while maintaining the existing capacity?

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