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Enron Mail |
"Palazzo, William" <William.Palazzo@nypa.gov< writes to the
NYISO_TECH_EXCHANGE Discussion List: In response to some E-mails on the subject report we offer the following comments. We believe expressing the locational requirement as a function of the capability period peak sends a better price signal to LSE's. Some LSE loads will have larger peak in summer and others may be balanced or even peak in the winter. Seasonal ICAP would facilitate capacity exchanges between summer and winter peaking areas. As a practical matter the requirement can be expressed any way. For this exercise we just left it as a percentage of the summer peak because it provides a reference point to the current requirement and illustrates an order of magnitude of the potential reduction in the winter requirement that may be justified through an examination of the seasonal risk. We agree completely that all issues, including deficiency charges, modeling, etc., must be considered in any methodological change. There was no intent to suggest everything else would remain unchanged.
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