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Last Modified - 12/16/2022

Forward Auction for Capacity with a Real-Time Settlement at Scarcity Pricing MSC-2021-8

Overview

Develop a Forward Auction for Capacity with a Real Time (RT) settlement at Scarcity Pricing.  This new auction would expand the Planning Resource Auction (PRA) to create a performance obligation for resources (sellers) and scarcity price coverage for load (buyers).  The new Scarcity Price created would be independent of Energy and Operating Reserves Market’s Locational Marginal Prices and would provide transparency, incentive, and time to react to tight supply/demand periods.

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