ISO NE Markets Forum

1
ISO - NE Markets Forum

• Supplier Sector Assessment
• Dan Allegretti - Vice Chair
• June 22, 2000

2
Supplier Goals

• 1. Liquidity
• 2. Equity
• 3. Liquidity
• 4. Certainty
• 5. Liquidity
• 6. Simplicity
• 7. Liquidity

3
Liquidity

• Energy Market Is Working For The Most Part.
  Asset Divestiture Has Helped New England.
• Capacity And Reserves Markets Are Not Working.
  Insufficient Liquidity, Vertical Demand And
  Inherent Design Flaws Create Serious Concerns.

4
Improvements

• OPCAP Elimination (ICAP?) - One (Two?) Less
  Complications
• SNETs - Increase Competition
• Reduced Price Administration - More Certainty
• Electronic Dispatch - Better Performance
  Monitoring

5
Impediments

• In Service - Hoarding Problem Created By FERC.
• Uncertainty About Rules - Too Many Changes/ Too
  Much Committee Work.
• Outages - Reduce Supply, Drive Uplift.
• Uplifts - No Way To Hedge.
• Last Man Problem - Especially In Capacity
  Reserve Markets.

6
Wisdom

• Advice Is To Be Given, Not Taken
• - Oscar Wilde

7
Advice

• Keep It Simple. It Is Impossible To Address
  Every Inequity. Focus On The Big Stuff.
• Test It First. CMS/MSS Is The Next Challenge.
• Remove The Seams. Bigger Markets Are More
  Disciplined.
• Continue To Do Right, Take Crap.