Ensuring Adequate Electrical Capacity in New England Ensuring Adequate Electrical Capacity in New England

By Carrie Conaway

New England's deregulated electricity market has not provided incentives for new investment in badly-needed capacity. This policy brief describes a settlement accepted by the Federal Energy Regulatory Commission on June 15, 2006 to address this problem by creating a forward capacity market for electricity in the region. It also discusses the region's prior, failed attempts to create a locational installed capacity market (LICAP) that set the stage for the settlement.

This policy brief complements the Center's 2006 Research Report, The Challenge of Energy Policy in New England.