NYISO Tariffs --> Market Administration and Control Area Services Tariff (MST) --> 5 MST Control Area Services: Rights and Obligations --> 5.13 MST Installed Capacity Auctions
The ISO will administer Installed Capacity auctions to accommodate LSEs’ and Installed Capacity Suppliers’ efforts to enter into Unforced Capacity Transactions and to give LSEs an opportunity to acquire sufficient their Unforced Capacity to meet their respective LSE Unforced Capacity Obligations. The ISO shall conduct regular auctions, at the request of an LSE, at the times specified in this section and the ISO Procedures, and may conduct additional auction as necessary.
Installed Capacity Suppliers, LSEs and Installed Capacity Marketers that are Customers under this Tariff will be allowed to participate in Installed Capacity auctions, provided that they satisfy the creditworthiness requirements set forth in Attachment K of the ISO OATT. Unforced Capacity purchased in Installed Capacity auctions may not be sold for the purposes of meeting Installed Capacity requirements imposed by operators of External Control Areas. Offers to sell and bids to purchase Unforced Capacity shall be made in $/kW for the time period appropriate to the auction. The ISO shall impose no limits on Bids or offers in any auction, except to the extent required by any applicable capacity market mitigation measures.
Installed Capacity Suppliers that wish to participate in an ISO‑administered auction must submit completed certification forms to the ISO in accordance with the ISO proceduresProcedures, demonstrating that their Unforced Capacity has not been committed to a Bilateral Transaction.
The ISO Procedures shall specify the dates by which the ISO will post the results of Installed Capacity auctions. The ISO Procedures shall ensure that there are at least four business days between the time that auction results from monthly auctions are posted and the dates that LSEs are required to demonstrate the quantity of Unforced Capacity that has been obtained for the upcoming Obligation Procurement Period, pursuant to Section 5.11.2 of this Tariff. LSEs holding Unforced Capacity which they want credited against their LSE Unforced Capacity Obligations must certify such Unforced Capacity when submitting their Installed Capacity certifications.
A Capability Period Auction will be conducted no later than thirty (30) days prior to the start of each Capability Period in which Unforced Capacity will be purchased and sold for the entire duration of the Capability Period. The exact date of the Capability Period Auction shall be established in the ISO Procedures. The Capability Period Auction is intended to facilitate long-term Unforced Capacity transactions between Market Participants.
The Capability Period Auction will be conducted and solved simultaneously to purchase Unforced Capacity which may be used by an LSE toward all components of its LSE Unforced Capacity Obligation for each Obligation Procurement Period. Participation shall consist of: (i) LSEs seeking to purchase Unforced Capacity; (ii) any other entity seeking to purchase Unforced Capacity; (iii) qualified Installed Capacity Suppliers; and (iv) any other entity that owns excess Unforced Capacity.
Buyers that are awarded Unforced Capacity shall pay the applicable Market‑Clearing Price of Unforced Capacity in the Capability Period Auction. Sellers that are selected to provide Unforced Capacity shall receive the applicable Market‑Clearing Price of Unforced Capacity in the Capability Period Auction.
The results of the Capability Period Auction will be made available to Market Participants at the time specified in the ISO Procedures, which shall be prior to the start of the Monthly Auction held prior to the beginning of each Capability Period.
Monthly Auctions will be held during which Unforced Capacity may be purchased and sold for the forthcoming Obligation Procurement Period, and any other month or months remaining in the Capability Period, as specified in the ISO Procedures. The exact dates of each Monthly Auction shall be established in the ISO Procedures. Each Monthly Auction is intended to facilitate Unforced Capacity transactions between Market Participants.
Each Monthly Auction will be conducted and solved simultaneously to purchase Unforced Capacity which may be used by an LSE toward all components of its LSE Unforced Capacity Obligation for each Obligation Period. Participation shall consist of: (i) LSEs seeking to purchase Unforced Capacity; (ii) any other entity seeking to purchase Unforced Capacity; (iii) qualified Installed Capacity Suppliers; and (iv) any other entity that owns excess Unforced Capacity.
Buyers that are awarded Unforced Capacity shall pay the applicable Market‑Clearing Price of Unforced Capacity in the Monthly Auction. Sellers that are selected to provide Unforced Capacity shall receive the applicable Market‑Clearing Price.
The results of each Monthly Auction will be made available to Market Participants in accordance with the ISO Procedures.
Additional detail concerning the ISO’s Installed Capacity auction procedures are provided in the ISO Procedures.
Effective Date: 1/29/2017 - Docket #: ER17-446-000 - Page 1