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Competition that causes gas transport facilities to be duplicated is ineffective, argues a reader.
Fortnightly Magazine - August 2000

that will permit customers such as those described in your column to respond to market prices in their decision to purchase. The NYISO staff and Market Participant committees will be working to create a stronger demand response, as well as additional steps that will improve market liquidity. The absence of a strong demand response, coupled with the length of time required to bring new generation supply into the market, have had significant influence on the issue of price.

When the New York electric industry headed for deregulation, it did so in an ambitious way with multiple markets and complex market structures. After almost seven months of operation, most facets of these markets are working well, but, as would be expected, there has been a need to review policies, procedures, and software with an eye toward fine-tuning. The NYISO did weigh in on the issues raised by New York Electric & Gas Corp. in its filing with a detailed response to the FERC on May 25.

The quote from Mr. Museler on May 17 was related to the NYISO's preparation for summer, not the NYSEG or customer observations, and it should be noted that the admonition for conservation was made in reference to times when "temperatures and humidity rise across the state."

On June 5, the Market Participants sitting on the NYISO's Management Committee voted 63 percent to 27 percent to request that the NYISO's board of directors file with the FERC to impose a temporary bid cap on energy and services of $1,000 and $1,100 on regulation until Oct. 31. The board is giving this proposal careful consideration, but at this writing, the outcome is unknown. However, persons following the New York market can be assured that the NYISO board of directors will act in the long-term interests of strong, competitive markets. ISO Meltdown? Not in New York.

Thomas E. Garlock
Director of Communications
New York Independent System Operator
Schenectady, N.Y.

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