By F. William Payne
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Additional resources for Utility and independent power: concept for a new millennium
Electricity Market (Pool) It is our view that an efficient pool or market for electricity is the backbone of a competitive electricity industry structure for several reasons: 1. It results in a competitive spot market price for electricity generation, which acts as the numeraire for financial contracts. 2. It sets a price for settling imbalances between contracted amounts and actual flows for scheduled bilateral contracts. 3. Consistent with operating and contracting requirements it can offer backup supplies to independent generators, and indeed it offers the cheapest way for all generators to meet their obligations.
Barrett, Barrett Consulting Associates, Inc. 61 Chapter 6 Electric Power Competition and the Economic Doctrine of Contestable Markets Ransome E. Owan, Senior Energy Analyst, University of Pennsylvania 69 Chapter 7 Providing Open Transmission Access and Services: The Role of Regional Transmission Associations Prem K. Bahl, Utilities Consultant, Arizona Corporation Commission 79 Chapter 8 The Competitive Power Market: How Profitable Will It Be? Richard J. J. Rudden Associates, Inc. 91 Page viii Section 2: The Customer Viewpoint Chapter 9 Blueprint for Customer Choice: ELCON's Road Map for the Utility Transition John Hughes, Director, Technical Affairs The Electricity Consumers Resource Council 103 Chapter 10 What Will Customers Want From the Competitive Market Place?
The market price will reflect the level of reliability customers are willing to pay for. Thus, regulatory requirements for generation planning and reserve standards will be removed or greatly reduced. 5 Managing and Pricing Transmission Services Transmission pricing and access constitute the most difficult of the trading arrangements. These issues are under consideration at the FERC, Page 27 who will have jurisdiction over them and will set the transmissions rate. In a competitive electricity system, changes will need to be made: transmission access will be available to all users on a non-discriminatory, comparable basis.