Approved Auction Result
New England • Capacity • ProcurementPublished April 13 • Updated September 3, 2026

ISO-NE 2027/28 ARA2 Clears at $3.935/kW-Month

The Bottom Line

ISO New England's approved second Annual Reconfiguration Auction for 2027/28 cleared at $3.935/kW-month. That is $0.355/kW-month, or 9.9%, above the original FCA 18 Rest-of-Pool price of $3.580. The ARA price settles reconfiguration trades; it does not replace the original auction result or equal a customer's delivered capacity charge.

$3.935
ARA2 Clearing Price
Per kW-month across reported interfaces
+9.9%
Vs. FCA 18
$0.355/kW-month above $3.580
445.4 MW
Supply Cleared
Rest-of-Pool supply offers

What ISO-NE Approved

ISO-NE posted approved ARA2 and annual reconfiguration-transaction results for Capacity Commitment Period 2027/28 on September 2. The official ARA2 CSV reports a $3.935/kW-month clearing price across Rest-of-Pool and the listed interfaces.

InterfaceSupply ClearedDemand ClearedNet ClearedPrice
Rest-of-Pool445.400 MW544.375 MW-98.975 MW$3.935/kW-month
Maine13.540 MW45.226 MW-31.686 MW$3.935/kW-month
Northern New England21.871 MW35.765 MW-13.894 MW$3.935/kW-month

ISO-NE's CSV displays demand-clearing quantities with negative signs. The table shows demand as an absolute quantity and preserves the reported net sign. Values were generated by ISO-NE on September 3, 2026.

How ARA2 Compares With FCA 18

ISO-NE's key statistics put the original FCA 18 Rest-of-Pool price for 2027/28 at $3.580/kW-month, with 31,556 MW acquired. The ARA2 price is $0.355 higher. KilowattLogic calculates the relative increase as 9.9%: `($3.935 - $3.580) / $3.580`.

That comparison is useful for tracking the value of adjusting capacity positions closer to delivery. It should not be read as a 9.9% increase in a customer's total electricity rate. Customer exposure depends on load obligations, supplier pricing mechanics, utility tariffs, hedges, and other energy, transmission, and ancillary charges.

Where Prompt-Auction Reform Fits

The 2027/28 period remains part of ISO-NE's existing Forward Capacity Market transition. FERC accepted the first phase of Capacity Auction Reforms on March 30, 2026. ISO-NE says the prompt-auction design will apply to delivery periods beginning in 2028, while a second seasonal-accreditation phase is expected to be filed by the end of 2026.

ARA2 is therefore a current market result, not a preview clearing price for the first prompt auction. Buyers should keep the reconfiguration result, the legacy FCA settlement, and future prompt-market design as separate layers.

Commercial Buyer Actions

  • Ask how capacity is passed through: confirm whether the supplier fixes, reconciles, or separately itemizes capacity obligations and reconfiguration effects.
  • Preserve the delivery-year distinction: do not blend 2027/28 ARA2 with the future prompt-auction period beginning in 2028.
  • Model facility load shape: translate any capacity-market input through the account's peak contribution, loss factors, supplier methodology, and contract language.
  • Track the second reform phase: seasonal accreditation could change how resources qualify and how future obligations are valued.

What Not To Infer

  • The ARA2 price does not replace FCA 18 for every obligation and is not a full retail rate.
  • The cleared bid quantities do not establish a region-wide capacity shortage or guarantee a future auction direction.
  • Prompt-auction reforms do not make the 2027/28 ARA2 a prompt auction.

Sources: ISO New England approved 2027/28 ARA2 results and annual reconfiguration transactions; ISO-NE Forward Capacity Market key statistics; ISO-NE Capacity Auction Reforms key project and Regional Electricity Outlook. Reviewed September 3, 2026.

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Translate Capacity Prices Into Account Exposure

Use your peak obligation, load shape, supplier formula, and contract year before assigning the ARA result to a facility budget.