NEPGA Files Comments in Support of Upward Mitigation Elimination – Docket No. ER24-324-000

On November 16, 2023, NEPGA filed comments in support of ISO-NE’s and NEPOOL’s joint filing of Tariff changes eliminating the potential for “upward mitigation” in the Real-Time Energy Market (Docket No. ER24-324). ISO-NE’s proposal responds to FERC’s May 5, Show Cause Order granting a Vistra request for the recovery of costs incurred but not recovered due to the Internal Market Monitor’s mitigation of offer prices in the Real-Time Energy Market on December 24, 2022. FERC denied recovery of unrecovered costs caused by “upward mitigation” – an offer mitigated to a Reference Level higher than the Market Participant’s desired offer price – finding that the Tariff dictates this outcome. FERC, however, directed ISO-NE to show cause why this outcome is just and reasonable, or to propose Tariff changes as a remedy. In response, ISO-NE proposed to provide that for each energy market offer block, the offer price will be the lesser of the Market Participant’s offer price and the Reference Level (in those cases where mitigation is imposed) – rather than the current Tariff rules that require mitigation to the Reference Level. In support, NEPGA highlighted that the proposal aligns economic incentives with reliability and is in the interests of both suppliers and consumers.

Posted in Document Archive, Federal Filings, Recent Filings.