Market Monitor Blog
Your home for commercial electricity and natural gas market news—covering market factors like supply, demand, regulatory affairs, weather, and more.
FERC Approves NYISO Plan For New Capacity Zone
The Federal Energy Regulatory Commission accepted a NYISO proposal to create a new capacity zone out of some of the most densely populated areas of the state. NYISO wants to make a new zone out of Zones G, H, I, and J; the last is New York City, and the others are some of its mainland suburbs and the… Read more
Reliability Concerns Could Delay Closure Of 2 Pennsylvania Power Plants
FirstEnergy Corp. may not be able to shut down two coal-fired plants in southwestern Pennsylvania by Oct. 9, as the company had previously announced. PJM believes reliability could be compromised if the stations are retired within the next three months. According to the grid operator, the upgrades to… Read more
Nelson Favors Closer Look At Capacity Market In ERCOT
Donna Nelson, chair of the Public Utility Commission of Texas, came out in favor of a deeper look at a capacity market for ERCOT. In a memo posted Friday, she said the current energy-only market design will produce a reserve margin equilibrium of around 8 percent to 10 percent with the changes the PUCT… Read more
PUCT Delays Action On Adopting Operating Reserves Demand Curve For ERCOT
The Public Utility Commission of Texas deferred until its next open meeting a decision on adopting an operating reserves demand curve (ORDC) for ERCOT. The move came over objections from Commissioner Kenneth Anderson, who opposed the delay, saying: “I believe that if we adopt the ORDC in some form, that… Read more
ISO-NE Seeks To Tweak Winter Reliability Program After Failed Bidding
ISO-New England will have to tweak its winter reliability program after initial bidding failed to procure the needed capacity, it told the Federal Energy Regulatory Commission. The program is designed to ensure the ISO has enough capacity to meet demand this winter, largely through a combination of oil-fired… Read more
Demand In ERCOT Hits Third-Highest Level In History
Demand for power in ERCOT hit the third-highest level in history on Wednesday, Aug. 7, as peak electric use topped out at 67,180 MW during the 4 p.m. to 5 p.m. hour. The grid experienced no problems during the day, as more than 74,000 MW of electricity was available during the peak hour. It was the highest… Read more
Operating Reserves Demand Curve Options Seen Boosting ERCOT Resource Adequacy
Additional options for setting parameters of an operating reserves demand curve (ORDC) in ERCOT would enhance resource adequacy, even at a lower minimum contingency level, according to an analysis by the Brattle Group. An earlier analysis had found that an ORDC with a minimum contingency level of 2,300… Read more
NYISO Handles Major Heat Wave; Competitive Market Credited For Performance
NYISO broke a peak demand record during last week’s heat wave, with average load hitting 33,955 MWs on Friday to beat the previous nark of 33,939 MW set in August 2006. Throughout the week, the grid operator reported, unprecedented levels of generator availability were experienced, and every bulk-power-producing… Read more
ERCOT Board Delays Decision On Raising Target Reserve Margin
The ERCOT Board of Directors deferred until September a decision to increase the target reserve margin to 16.1 percent from the current 13.75 percent. ERCOT Board Chair Craven Crowell said the planning reserve margin, as well as the load-carrying capability of wind – which is also being reviewed – are… Read more
MISO Needs To Fix Capacity Market To Maintain Reliability
MISO needs to fix its power market to encourage generating companies to invest in new plants to help keep the system reliable, according to the grid’s market monitor. Economic signals in the ISO “would not support private investment in new resources,” Potomac Economics, said in its 2012 state of the… Read more