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Enron Mail |
Joel
My apologies if I mischaracterized the presentation, I simply interpreted this excerpt from the PSC presentation.. As can be seen from the spreadsheet, no single supplier, withholding 50 MW, can, on its own, cause the price to rise by the $100 needed to breach the AMP's $100 price impact threshold. But, if a number of large players, each acting unilaterally, withhold 50 MW due to the profitability of doing so, the combined effect on price could be over $100, which would be both very damaging to buyers, and very profitable to suppliers. In my simple interpretation of the NYISO Market Monitoring Plan it is a measure of conduct and impact. As follows from the Market Monitoring Plan.. 2.1 Conduct Subject to Mitigation Mitigation Measures may be applied: (i) to the bidding, scheduling or operation of an "Electric Facility," defined for purposes of this Addendum to the Plan as an electric generation resource or transmission facility; or (ii) as specified in ? 2.3(b)). 2.3. Categories of Conduct that May Warrant Mitigation a) The following categories of conduct, whether by a single firm or by multiple firms acting in concert, may cause a material effect on prices or guarantee payments in a New York Electric Market if exercised from a position of market power. Accordingly, the NYISO shall monitor the New York Electric Markets for the following categories of conduct, and shall impose appropriate Mitigation Measures if such conduct is detected and the other applicable conditions for the imposition of Mitigation. You state that one generator witholding 50 MW does not warrant mitigation but a number of firms acting "unilaterally" would have an impact and should be mitigated. The NYISO however according to section 2.3 (in my interpretation of the Plan) a witholding of 50 MW (using your MW value) by multiple firms cannot be market power if they are not acting in concert. You admit that they are acting unilaterally and not acting in concert. If that is the case the only way these firms should be mitigated is if they are colluding or acting in concert. Potentially splitting hairs here and I have no intention of swapping interpretations of the Market Monitoring Plan when it is clearly the function of the NYISO market Monitoring Unit, but what is the PSC's position on one market participant trying to export 500 or 1000 MW to multiple export points out of the NYISO; will this not have an impact on price, is this market power because prices may go up? Hopefully market power is not defined by high prices but by conduct as defined in the Plan. Regards.. Joe -----Original Message----- From: joel_brainard@dps.state.ny.us [mailto:joel_brainard@dps.state.ny.us] Sent: Friday, January 25, 2002 3:21 PM To: NYISO TIE List Subject: Reduction of OOM? ----- Forwarded by Joel Brainard/ORE/NYSDPS on 01/25/02 03:23 PM ----- "Kirkpatrick, Joe" <Joe.Kirkpatrick@constellation.com< 01/20/02 08:12 PM Please respond to market_relations To: NYISO TIE List <joel_brainard@dps.state.ny.us< cc: Subject: Reduction of OOM? Joe Kirkpatrick wrote: On a side note it is interesting to note that there is a recent presentation to the AMP/ICM Task Force by one of the participants that has determined that if all the large suppliers collude in tandem to withhold 50 MW each that there could conceivably be an increase in price. While this conspiracy theory is of concern to said presenter it would seem highly unlikely, especially considering that bid load or exports provide a much higher impact on price in reality than the unlikely scenario of some large suppliers all colluding in tandem. My comment: This is a serious mischaracterization of what was said. No collusion is required. All that is needed for a large impact on prices from the exercise of market power is for the generators to act in their own self interest. --- You are currently subscribed to nyiso_tie as: nyiso@powersrc.com To unsubscribe send a blank email to leave-nyiso_tie-628650Q@lyris.nyiso.com --- You are currently subscribed to nyiso_tie as: benjamin.rogers@enron.com To unsubscribe send a blank email to leave-nyiso_tie-628650Q@lyris.nyiso.com
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