How does each region manage congestion, allocate losses and dispatch resources? Which players gain the most from each approach?
The United States now has six independent system operators...
certainly will have its own set of challenges. "Obviously, this approach puts a lot of pressure on internal systems from a performance standpoint, because you're just dealing with vast amounts of data," points out Structure Consulting principal Lelon Winstead.
The question becomes, then, is the new approach better? Having consulted extensively in ERCOT, Krajecki may be biased, but he offers some insight. "I definitely think Texas has probably the best retail deregulation program out there." In terms of the customer data approach, the idea, he says, is to get the most accurate settlement in the end.
If ERCOT's customer data approach is successful, other regions conceivably would pay heed, chanting the clichŽ that there's no need to reinvent the wheel. But there is, in fact, a problem with applying ERCOT's approach outside of ERCOT: Like its own customer data approach, ERCOT itself, by definition, is unique. ERCOT, unlike most ISOs, is entirely self-contained. "The reason [ERCOT] could do this was because they're fully located inside of Texas," observes Krajecki.
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.