New England States’ Preferred Approach
ORTP EXEMPTIONS

November 9 -10, 2011
MARKETS COMMITTEE

First…

• None of the proposals appear to be perfect long-term solutions
• Irrespective of which proposal is ultimately implemented, the region should evaluate & discuss over time
• States appreciate the opportunity to communicate their collective sense of best way forward at this time

Eligible Resources

Definition of Renewable Resource
Those Renewable Technology Resources recognized – in common – by all six New England states:
solar, wind, biomass, landfill gas, small hydro and ocean.

Exemption

For all Renewable Technology Resources, the IMM shall not review the Offer Review Trigger Prices for these resources or increase the Offer Review Trigger Prices for these resources above $0.00.

Discussion

• FERC open to exemption to further State policy objectives: FERC noted it had insufficient information to act previously. FERC recognizes States’ rights to pursue State policy objectives
• Procurement of these resources will occur regardless of FCA prices
• Case-by-case exemption creates barrier to resources that advance collective New England States’ policy objectives

Further Discussion

• States preferred approach intended to provide resource with a capacity supply obligation
• Resources not eligible per States’ preferred approach could still request exemption as contemplated in ISO’s proposal
• States’ preference on this matter substantively aligned with NECPUC’s Request for Clarification filed 5/13/11 with FERC

Thanks. Questions?