Market Monitor Blog
Your home for commercial electricity and natural gas market news—covering market factors like supply, demand, regulatory affairs, weather, and 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
FERC Accepts NYISO’s Emergency DR Pricing Plan
The Federal Energy Regulatory Commission accepted a proposal by NYISO to better reflect scarcity conditions when emergency demand response is called on to resolve a localized reserve shortage. The ISO’s markets already had scarcity pricing when reserves go below requirements in the entire footprint or… Read more
Independent Market Monitor: MISO Reserve Margins Lower Than Most Think
After adjusting MISO’s reserve margin for this summer to account for more “realistic” assumptions, the ISO has a significantly lower planning reserve margin than most people think, its independent market monitor said. Potomac Economics President David Patton said the ISO this summer reports a 28.1 percent… Read more
ISO-NE Asks FERC For More Changes To Manage Gas-Electricity Coordination
ISO-New England submitted another package of rule changes to the Federal Energy Regulatory Commission to address natural gas-electric coordination issues. The primary change stemmed from concerns over the adequacy of gas supply when it is needed by generation and end-use customers, and from the ISO’s… Read more