News Digest

Deck: 
The California ISO offers a plan, but some fear that rules themselves are the problem.
Fortnightly Magazine - March 15 2001
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

 

News Digest


 

Power Markets

Striking a blow for power producers, who cited the risk of not being paid, the FERC denied authority to the California ISO to waive its minimum credit requirements to allow PG&E and Southern California Edison to continue to schedule transactions within ISO markets with third-party power producers and marketers.

The FERC ruled that PG&E and Edison must continue to meet ISO credit standards, except in the limited case in which PG&E or Edison would self-provide the transaction and create no risk for third parties-that is, the utilities would be using only their own generating facilities and their own proprietary transmission lines (albeit under ISO control) to execute the scheduled transaction.

The FERC said that if it allowed the ISO to lower credit standards for the two largest buyers in the market, it would foster "an inappropriate unilateral shifting of unacceptable financial risks to both large and small third-party suppliers." .

The FERC acted after noting various retaliatory actions by power producers.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.