An interesting development in the climate change debate occurred this summer in the U.S. Congress. It wasn’t the Senate’s work on the Lieberman-Warner Climate Security Act; that was a...
of a future recalculation, and that traders would never agree to trade under such an environment.
The traders sound like they have a good case. This was a popular argument in California, despite the fact that the guarantees they ask for are not really found in any mature exchange or market.
The New York Stock Exchange and the New York Mercantile Exchange said they publish the correct prices when they find an error, and they would not let computer-glitch prices stand (which, they note, happens rarely). They also said it would not matter when the mistake was discovered. Why perpetuate a mistake?
Those New York entities don't need a filed-rate doctrine. They know that publishing correct prices and engendering trust is their "bread and butter," because traders of any kind would move their business elsewhere otherwise. That's called competition. It would be nice to have a little more of it in wholesale power markets.
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