Capacity Markets in NYISO & ISO-NE

Electricity market demand is increasing by 1.5 - 2.0% per year. With demand rising and older power plants retiring, the need for power supply in the North Americas, in general, is becoming critical. This is especially true in the Northeast part of the US. While much discussions and regulatory filings have been done, an effective formation of the capacity market is still in the making. A review of the capacity market and resource deliverability in the Northeast, the mechanism of the capacity markets, the pros and cons, and how they are supposedly to work will be discussed.