February 02, 2023
Under ISO-NE's old rules, the economic life for this example generating resource would be five years because the cumulative net present value remained positive even though the plant lost $3 million in the last year. Under the new rules, the economic life would be four years, when its NPV peaked at $10 million, recognizing that the owner would not want to absorb losses in year five. | © RTO Insider

Split FERC OKs New 'Economic Life' Rules for ISO-NE

Change Could Mean Lower Capacity Prices

Nov 11, 2018
Rich Heidorn Jr.
ISO-NE / Capacity Market / Generation
By Rich Heidorn Jr. FERC on Friday approved ISO-NE’s plan to correct a key calculation in evaluating delist bids, a change that could reduce capacity prices. The 2-1 ruling, supported by Commissioners Cheryl LaFleur and Richard Glick, prompted a dissent by Chairman Neil Chatterjee, who said that making the change...

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