Three challenges to federal authority from those unhappy with the status quo.
A look at how regulators, grid operators, and consumer advocates in Arkansas, California and Connecticut have posed challenges to established law and policy at FERC.
Exclusive interviews with the CEOs of five regional transmission systems.
Exclusive interviews with CEOs at five regional independent transmission system operators: Phil Harris, at PJM; Gordon van Welie, at ISO New England; Yakout Monsour, at the California ISO; Graham Edwards, at MISO; and Mark Lynch, at the New York ISO.
Beware even the best of attempts at apportioning grid rights and costs.
Several recent complaints involving PJM and now at FERC pose fundamental questions on how regulators and grid operators should attempt to price and allocate grid rights and costs. Is the transmission network a public asset, with costs that must be apportioned on principles of equity? Or, rather, is transmission an instrument of commerce, to be priced so as to maximize trade?
America’s energy competition laboratory prepares to build.
Hind Farag and Gary L. Hunt
The ERCOT region remains a living example of how to make a successful transition to restructured wholesale and retail markets for electricity. At the same time, the market continues to witness some significant developments. Sights are turning from recovery to the next stage of the power business cycle: The Buildup.
Financial transmission rights and regulated returns have not induced needed construction. Presenting an alternative model.
J. Jolly Hayden and Robert J. Michaels
By almost any measure, the nation is running short of transmission, and the existing volume of investment cannot long continue to reliably accommodate retail-load growth and larger wholesale volumes. Factors like environmental opposition also have caused declines and delays in transmission investment, but it seems clear that financial transmission rights and regulated returns have not sufficed to induce the necessary construction. The authors propose a new model to reward investors who lower congestion costs.
Tough plant-retirement decisions being made in Canada to reduce its carbon footprint contrasts with America’s embrace of coal-based generation.
Gary L. Hunt and Mark Turner
There is a certain irony in Ontario’s decision to phase out its coal-fired generation at a time when the demand for new coal-fired plants is growing in the rest of North America. Global Energy’s analysis of demand for coal for power generation suggests that growth in demand for coal is likely to continue and even challenge coal producers to step up their productive capacity and deliverability to meet that demand.
How Congress opened another can of worms with its call for regional joint boards to study power-plant dispatch.
Did Congress really invite the industry to re-examine the concept of economic dispatch, as practiced by the regional grid operators and RTOs, through market bids, day-ahead markets, a centralized auction, and a uniform market-clearing price? Perhaps not, but skeptics of RTO practice have called the bluff, if that’s what it was.
Cal-ISO files a new market design, but has it traded efficiency for software?
Eyeing a launch date of November 2007, Cal-ISO at last has come forward with plans for revamping its widely disparaged wholesale market design. The formal proposal, known as the MRTU (Market Redesign and Technology Upgrade), was filed this past February at FERC.
Does inappropriate market power explain the increase during late 2005?
Beginning around June 2005, prices in the PJM day-ahead locational market pricing energy markets and real-time pricing markets rose precipitously. Based on publicly available information, our study concludes that these price increases are not fully explained by higher loads and higher commodity fuel prices. Could higher energy prices be the result of the inappropriate exercise of market power rather than the appropriate result of market dynamics operating in the presence of scarcity?
Congress gives FERC an impossible task: Craft long-term transmission rights to save native load from paying grid congestion costs.
If “perfect” be the enemy of the “good,” then look no further for proof than in Federal Power Act section 217(b)(4), enacted by Congress in EPACT 2005.