Conference%20on%20Standard%20Market%20Design%20Issues

1
Conference on Standard Market Design Issues

• Alice Fernandez, FERC Staff
• January 22-23, 2002

2
Overview of Conference

• Primary objective increase understanding of
  existing and proposed market designs
• Presentations on existing market designs and
  those under consideration

3
Conference Schedule

• Day 1-discussion of market designs in the
  Northeast and Midwest
• Day 2 morning - discussion of market designs in
  the Northwest and Texas
• Day 2 afternoon roundtable discussion to
  discuss differences and best practices

4
Status of Market Designs

• CAISO, ERCOT, ISO-NE, NYISO, and PJM in effect
• CAISO staff issued Comprehensive Design Proposal
  on January 8
• ISO-NE adopted PJM market design, in process of
  implementing

5
Status of Market Designs

• MISO considering long-term market design and
  congestion management
• RTO West considering congestion management
  proposals

6
Comparison Energy Markets
PJM NYISO ISO-NE SMD MISO D-3
Congestion Pricing LMP LMP LMP LMP
Day ahead Real time Yes Yes Yes Yes
Self schedule Yes Yes Yes Yes
Supply bids 3 Part 3 Part 3 Part 3 Part
Price responsive demand Some Some Some Some
Losses Socialized Marginal Marginal Marginal
Generation Adequacy Capacity Obligation Capacity Obligation Capacity Obligation Market Prices
7
Comparison Transmission
PJM NYISO ISO-NE SMD MISO D-3
All under tariff Yes Yes NEPOOL, MEPCO,HQ Local Yes
Rights Financial Financial Financial Financial
Allocation Methodology Assigned Auction Auction Assigned/ Auction
PTP Obl. Yes Yes Yes Yes
PTP Opt. No No No Yes
Flowgate No No No Yes
8
Comparison Reserves Markets
PJM NYISO ISO-NE SMD MISO D-3
Regulation Yes Yes Yes Yes
Spin 2002 Yes Yes Yes
Non spin No Yes No TBD
30 min No Yes No TBD
9
Market Power Mitigation
PJM NYISO ISO-NE current MISO D-3
Reliability must run Pre-July 1996 units In city rules Yes Yes
Bid screens No Yes, inc. AMP Yes TBD
Demand response proxy 1,000 bid cap 1,000 bid cap 1,000 bid cap None
Generator Bid Rules Yes Yes Yes TBD