Electricity, Generation

Cal-ISO proposes tariff changes to prevent market power

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Cal-ISO proposes tariff changes to prevent market power
Washington (Platts)
Tariff changes proposed to federal energy regulators by the California Independent System Operator would prevent exercise of market power by expanding the ISO’s mitigation abilities, Cal-ISO said Wednesday.

Cal-ISO proposed the changes to the US Federal Energy Regulatory Commission, saying they would address potential market power in two areas of the Cal-ISO market.

“The ISO has, to date, observed only one market participant taking advantage of these opportunities to exercise market power, and available mitigation measures have limited excessive gains from the behavior,” the ISO told FERC. “However, the ISO has determined that additional mitigation authority is warranted to…

Electricity, Generation

Wholesale electricity price cap hike not necessary, report says

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Wholesale electricity price cap hike not necessary, report says
Houston Business Journal by Olivia Pulsinelli, Web producer
While Texas’ wholesale electricity price cap hike goes into effect Wednesday, an independent report created for the Texas Public Utility Commission says it wasn’t necessary to spur new power plant construction.

Potomac Economics, a consulting firm with offices in Austin; Fairfax, Va.; and Carmel, Ind., wrote the report and found wholesale electricity prices were already high enough to support power plant construction, the…

The question is what does a market have to offer to entice companies to enter the market? In Texas the PUC thinks it is limitless wholesale prices. In my opinion the way to get more market players is to offer a return on investment sufficiently at or above opportunities elsewhere. Very high wholesale price cap hikes appear to tilt the generation companies to the last MW instead of the first. This sends a signal for companies to play the waiting game before announcing new generation plants. Environmental regulators do not help the situation either with frequent announcements of new requirements.