New England Power Generators Association successfully challenges New England capacity market pricing rules
Clients New England Power Generators Association, Inc.
Jones Day represented the New England Power Generators Association ("NEPGA") in a complaint proceeding before the Federal Energy Regulatory Commission ("FERC") that successfully challenged the administrative pricing rules applicable to the wholesale electric capacity market in New England. Prior to the complaint, there was substantial price discrimination between the capacity prices paid to new and existing generation resources, which was contributing to the loss of existing generation and the need for ISO New England to pay much higher prices to attract new entry. In response to the complaint, ISO New England revised its market rules to increase the capacity prices paid to existing generation to a level more comparable to the actual cost of new entry and the FERC directed ISO New England to implement a longer-term re-design of its capacity markets to address the structural problems that were the basis of the NEPGA complaint.