Forward Capacity Market CONEfusion

In ISO New England and PJM it was assumed that sponsors of new capacity projects would offer them into the newly established forward centralized capacity markets at prices based on their levelized net cost of new entry, or “Net CONE.” But the FCCMs have not operated in the way their proponents had expected. To clear up the CONEfusion, FCCM designs should be reconsidered to adapt them to the changing circumstances and to be grounded in realistic expectations of market conduct.