Region's electricity prices expected to keep rising

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http://www.wickedlocal.com/article/20150704/NEWS/150708379/1999/NEWS



Region's electricity prices expected to keep rising
By Ben Thompson
Posted Jul. 4, 2015 at 9:28 PM
Updated at 9:32 PM

First of two parts

Although New England residents already pay for electricity at a higher average rate than the rest of the contiguous United States, issues with the regional capacity and energy markets may continue the upward pricing spiral for the next several years.

ISO New England Inc., the independent system operator for the region’s power market, held its ninth Forward Capacity Market auction in February to plan ahead for power demand and generation. The annual auctions are used to set pricing and obligations for New England energy generators three years in advance of when they will be needed; ISO New England’s FCA 9, held Feb. 2-4 this year, issued results affecting the period from June 1, 2018, through May 31, 2019.

“It’s kind of like an insurance policy,” explained Lacey Girard, a media relations representative from ISO New England. “The auction is designed to send the price signals to tell the investors that more capacity is needed.”

Most New England auction zones saw a slight capacity price increase from last year’s auction, but an inadequate supply predicted for the Southeastern Massachusetts and Rhode Island zone flat-out cancelled regular bidding and triggered higher “administrative pricing” for both existing and new resources in the area.