But how else can plant owners justify those high prices they paid at auction?
Seizing on data offered by other workshop speakers, which showed that markets for capacity and ancillary services in PJM show a very thin volume of trading, Hanger in effect challenged PJM and the other ISOs to prove their mettle. Do they eliminate rate pancaking? Do they encourage green power? Why don't they provide for demand-side bidding of conservation resources? (Later, during one of the Q&A sessions, a representative from PJM said it would put a multi-settlements process into effect in June that would allow for demand-side bidding to some degree.)
But traders still wonder if ISOs really get it.
Lawyer Marjorie Philips from PECO Energy's Power Team said her biggest concern was still open access. As she explained, "The New York ISO does not have any OASIS product for transmission other than the hour-ahead energy contract.
"You can reserve transmission capacity only by reserving an FTR [fixed transmission right] as a hedge against transmission congestion. You can't reserve firm transmission capacity in its own right as a product."
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