Publications

    FERC, Operator‐Initiated Commitments in RTO and ISO Markets, 2014.Abstract

    EXCERPT FROM THE EXECUTIVE SUMMARY:

     

    This paper is part of an effort to evaluate matters affecting price formation in the energy and ancillary services markets operated by Regional Transmission Operators (RTOs) and Independent System Operators (ISOs) subject to the jurisdiction of the Federal Energy Regulatory Commission (FERC or Commission). It focuses on operator-initiated commitments in the RTOs and ISOs and the challenges in internalizing all relevant physical and operational constraints in the day-ahead and real-time market processes. This paper defines an operator-initiated commitment as a commitment that is not associated with a resource clearing the day-ahead or real-time market on the basis of economics and that is not a self-schedule. Deeming an action to be “operator-initiated” is not intended to confer any judgment that the action is not appropriate or necessary to maintain reliability.

     

    Hogan, William W.Time-of-Use Rates and Real-Time Prices.” In, 2014.Abstract
    Electricity prices that describe marginal costs can vary substantially over time. Fixed rates ignore changing electricity system conditions. Setting prices that differ for certain periods is an approach to approximating the real-time price. If such time-of-use prices are set in advance, they will necessarily miss the full variability of real real-time prices. A simple index indicates that even very good time-of-use rates would miss the majority of the efficiency gain that would result with use of actual real-time prices.
    Hogan, William W.Back Cast of Interim Solution B+ to Improve Real-Time Scarcity Pricing: White paper.” In, 2013.Abstract
    The Public Utility Commission of Texas (PUCT) has requested that ERCOT perform a back cast of an interim proposal that will approximate Real-Time co-optimization of energy and Ancillary Services (AS). This interim proposal has been described as the “Interim Solution B+” and is intended to be a more appropriate method of pricing scarcity during conditions of low operating reserves in Real-Time. This back cast approximates the pricing outcomes and estimates what the market impacts may have been if “Interim Solution B+” had been in place for the years 2011 and 2012. This analysis builds off of the previous “Interim Solution B” back cast that was filed by ERCOT on February 13, 2013.
    Hogan, William W.Electricity Scarcity Pricing Through Operating Reserves: An ERCOT Window of Opportunity.” In, 2012. Publisher's VersionAbstract
    Texas has a window of opportunity to complement its resource adequacy initiatives with an accelerated program to adopt an operating reserve demand curve. Suppressed prices in real-time markets provide inadequate incentives for both generation investment and active participation by demand bidding. An operating reserve demand curve developed from first principles would improve reliability, support adequate scarcity pricing, and be straightforward to implement within the framework of economic dispatch. This approach would be fully compatible with other market-oriented policies, the existing Texas “energy only” market design, and the proposed options for long-term resource adequacy.
    Alexander, Barbara. “Part One: An Analysis of Residential Energy Markets in Georgia, Massachusetts, Ohio, New York and Texas.” In, 2002.Abstract

    Excerpt from the Executive Summary:

    The five state programs examined in Part One include: Georgia’s natural gas competition program at Atlanta Gas Light Co., New York’s Consolidated Edison’s electric restructuring program, Massachusetts’ electric competition program (statewide), Ohio’s electric competition program (statewide), and Texas’ electric competition program (statewide). Part One analyzes the terms of service provided to residential customers through both Default Service and the offers made by competitive suppliers; the consumer protection programs and policies adopted by each state; the extent of the development of the retail market; and the scope and type of competitive suppliers who have sought to obtain residential customers.

    Rose, Kenneth, and Venkata Bujimalla. 2002 Review of Electric Power Markets, 2002.Abstract

    Excerpt from the Executive Summary:

    News of Enron’s accounting improprieties and subsequent collapse have been part of the continued eventful last two years for the electric supply industry. Shortly after the skyrocketing prices in California and the West of 2000 and 2001 had subsided, the Enron developments began to come to light in late 2001. This has lead to investigations by several federal agencies and revelations of improper trading and reporting practices of other energy companies. As a result of this and reduced demand for electricity, the industry has been hit by a “credit crunch” as investors have become more wary and has forced many energy companies to cut back on trading activities, sell assets, and reduce future investments in order to improve their balance sheets. In the face of all the industry turmoil, while many retail markets remain relatively inactive, particularly for smaller residential customers, overall market activity has increased from last year. Wholesale markets since California settled down, continue in general to function well from an operational standpoint, however, there continues to be strong evidence that significant market power is being exercised in all markets that have been examined.