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In the face of objections from some of the New York's largest energy users and utilities, the Federal Energy Regulatory Commission (FERC) approved a controversial proposal by the state's independent system operator (NY ISO). The May21 decision provided conditional authority for NY ISO to implement an installed capacity (ICAP) demand curve in the grid operator's ICAP market. FERC said the proposal will provide better price signals to investors for the construction of new generation and encourage the formation of long-term, bilateral transactions, among other things.
The new rule would allow the installed capacity to vary monthly depending on a ...