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California's three largest investor-owned utilities have petitioned the Federal Energy Regulatory Commission to convene a technical workshop on market-power issues raised by electric deregulation. Although a workshop had been held on Jan. 17, the utilities say the need more guidance (Docket No. ER96-1663-000).
The utilities are most concerned with the issue of "must-run" plants, and how to minimize the market power of generating units that must run to maintain reliability. For example, Southern California Edison, which plans to sell all of its fossil-fueled plants, has proposed a system of "call contracts," which would allow the independent system operator to order must-run plants to sell electricity into the power exchange at cost.
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