New England Capacity Costs are on the Rise

Planned electricity generation plant closures through 2018 will result in a reduction of over 3,500 mega-watts of electricity for the New England region. And more are at risk of retiring in the near future. If the region cannot source electrical generation to replace the reduction, the region will be facing a shortfall in meeting peak electricity demand by 2017/2018. This electricity deficit has already been reflected in the increased capacity market prices.

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Key Points:

  • Increasing capacity rates are becoming a real issue as we move through 2016 and beyond
  • Capacity costs are indisputable charges that have already been approved by ISO New England
  • What you use this year on the peak day will become your future capacity assignment
  • Your capacity assignment will impact your energy costs beginning June 1, 2017 and will last through May 31, 2018

Companies will pay higher costs for capacity in the near future, but there are ways to mitigate the full costs of these escalations through a capacity management program.

SEMA Cap Cost Graph NEMA Cap Cost Graph West Central Cap Cost Graph



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