PacifiCorp informed FERC, PG&E, and the state of California that it would not renew the contract upon its long-anticipated expiration date of July 31, 2007. Instead, it would take back full...
Coal's Raw Deal
The bias in RTO markets, and how FERC might fix it.
gaining a hedge.
Perhaps the last word on this problem should belong to one Neal A. Fitch, a regulatory specialist at Reliant Energy Inc.
Mr. Fitch suggests that RTO skill in managing real-time grid operations may not translate to the speculative world of financial derivatives:
"While it has historically been reasonable," he writes, "for the RTO to [act] as the market operator and/or clearinghouse in short-term markets … it is less clear whether or not the RTO should pay a significant role in long-term financial markets that ... deal exclusively with risk management.
"It may be the case that [others] can provide ... long-term FTRs without the added complexity."