FERC

FERC Chasing the Uncatchable

Trying to fix mandatory capacity markets like trying to win whack-a-mole, Part I

FERC’s efforts to get capacity markets “right” have led to endless – and futile – tinkering. The cure proposed – making capacity auction markets mandatory – has unfortunately proved far worse than the disease.

Bid-Offer Spreads: A Hedging Device

How exactly does a retail energy marketer use the spread as a hedging device?

Bid-Offer spread represents the profit a market-maker or intermediary demands for creating liquidity. This spread is composed of the intermediary’s variable cost per deal plus any liquidity risk they may bear.

Breakdown of Tariff Risk

Explaining timing risks and magnitude risks.

Tariff risk is that risk which the marketer incurs downstream of the uplift. This risk can be broken into Timing Risk (I - III) and Magnitude Risk (IV-VI) as illustrated below.

The Gas-Power Vision: Five Obstacles

Regulatory and rate proceedings at FERC can be time consuming and expensive, but this hurdle can be overcome.

For the natural gas infrastructure and the available pipeline system capacity to be utilized as a foundation for the reduction in power transmission congestion, there are certain issues that need to be addressed.

The Long and Short of Grid Congestion

FTRs make hedging possible, but can PJM ensure full funding without playing favorites?

Financial traders believe PJM’s proposal discriminates since they are more likely to hold counter-flow FTRs.

Going Against the Flow

Transmission cost allocation when electrons and benefits move in different directions.

You’ve heard the old saw, “Costs are assigned to those who caused them.” But what about damage from Superstorm Sandy? Who “caused” that?

New Grid Security Measures for 2016

Two new laws that may have escaped attention by the industry have the potential to dramatically change the grid security landscape

It is unclear whether and to what extent CISA 2015 will displace or incorporate existing electric industry programs