Full Title: Competitive Electricity Markets Spotlight: ISO New England
Author(s): Electric Power Supply Association (EPSA)
Publisher(s): Electric Power Supply Association (EPSA)
Publication Date: May 27, 2021
Full Text: Download Resource
Description (excerpt):
Established in 1997, the Independent System Operator of New England (“ISO-NE”) manages New England’s electric grid and competitive wholesale electric marketplace. ISONE serves 14.8 million New Englanders across six states: Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and most of Maine. ISO-NE has invested $11 billion in grid infrastructure over the past 20 years, and continues to expand its diverse energy mix to provide New England with reliable power.
ISO-NE’s energy markets secure electricity supply to meet consumer demand in real time and in the near term (sometimes referred to as the forward or day-ahead market). Power is bought and sold in the energy market much like a stock exchange – electric generators offer into the market at the price required to cover the costs of producing power and then utilities (or load-serving entities) bid for that electricity in order to meet their customers’ energy demand. The offers are then stacked in order from lowest to greatest and the energy market “clears” where supply and demand meet. Electric generators then receive the clearing price established from the utilities.