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Explore the evolution of competition in electricity markets through historical context, traditional hub-and-spoke methods, and staff options paper. Analyze market shares, transmission issues, supplier tests, and market power assessments.
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Assessing Competition In Electricity Markets Jerry Pederson
Historical Context: • Vertically Integrated IOUs • Trading Predominantly Amongst Themselves • Encourage IOUs to File OATT
Historical Context: • Generation Market Power • Transmission Market Power • Barriers To Entry • Affiliate Abuse
Traditional Approach: • Hub-And-Spoke • Geographically Based Analysis X Y
Traditional Approach: • Hub-And-Spoke • Installed Capacity – Total Resources • Uncommitted Capacity – Installed Less Peak Load and Reserves
Hub-And-Spoke: • Ratio of Market Shares • 20% or Less + Sec. 35.27 • “On Balance”
Hub-And-Spoke: • Transmission Issues • Hearing • Limit MBR Authority
Hub-And-Spoke: • Commenters’ Concerns • Industry Increasingly Dissatisfied • Transmission Limitations Not Considered
Staff Options Paper: • Limited Competing Supplier Test • Supply Margin Assessment (SMA) • Delivered Price Test • Residual Supply Index • Type Of Market Design
Supply Margin Assessment: • Interim Market Power Screen • Transmission Capability Limits Supply • Peak Load Incorporated
Supply Margin Assessment: • Application • Non RTO/ISO Markets • RTO/ISO Markets