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Enron Mail |
FYI.
----- Forwarded by Jeff Dasovich/NA/Enron on 11/20/2000 03:54 PM ----- pwpens <pwpens@socrates.Berkeley.EDU< 11/20/2000 01:11 PM To: (Recipient list suppressed) cc: Subject: POWER Working Paper Email Notification Service (PWPENS) _________________________________________________________________ N E W P O W E R W O R K I N G P A P E R Working Paper Series of UCEI _________________________________________________________________ POWER Working Paper Email Notification Service (PWPENS) A service of The University of California Energy Institute's Program on Workable Energy Regulation (POWER). All POWER working papers can be downloaded free of charge from the UCEI website: http://www.ucei.org Just follow the link to "POWER Research". ________________________________________ "Soft Price Caps and Underscheduling Penalties: How Would the FERC Plan Affect California Electricity Markets?" (November 2000) PWP-079 by Steven Stoft FERC proposes three short-run stabilization "remedies" in its Market Order Proposing Remedies for California Wholesale Electrics, issued November 1, 2000. The first allows the IOUs to purchase power outside the PX. The second sets a penalty that will frequently reach $100/MWh on unscheduled power in excess of 5% of a purchaser's total load. The third is a $150 "soft" price cap on the ISO and PX. On the infrequent occasions when the cap is effective, it will exacerbate the scheduling problem. Generally, when needed, it will be subverted by exemptions for opportunity costs. Because the soft cap is applied to the PX, but not to other scheduling coordinators, it will drive suppliers away from the PX. Allowing more forward contracting of net suppliers will reduce market power, but it will be very expensive without an effective bid cap. To be effective, a bid cap must allow no exceptions and must also be a regional cap to avoid causing reliability problems for California. Download this paper in Adobe Acrobat format: http://www.ucei.org/PDF/pwp079.pdf ________________________________________ If you would like to be removed from this list, please send an email to Mailto:pwpens@socrates.berkeley.edu and include UNSUBSCRIBE in the subject heading. If you received this email indirectly and would like to be added to this emailing list, please send an email to Mailto:pwpens@socrates.berkeley.edu and include SUBSCRIBE in the subject heading.
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