Standard Market Design and RTO Development

 

·        Standard Market Design

o      What’s interaction of SMD and Western RTO proposals?

§        Nature of spot energy market and how it fits with RTO West proposal

o      How do bid-based markets in the SMD relate to economic dispatch of Western generation resources today

o      What’s the link between honoring long-term contracts and the robustness of the market

·        RTO development

o      Would FERC consider structures other than RTOs?

§        For example, if costs/benefits for RTO West are not positive, will FERC entertain alternatives to an RTO?

o      Geographic scope of western RTOs

o      Governance of RTOs

§        Single standard for all RTOs?

o      How will the participation/non-participation of public power entities (e.g., BPA) affect FERC’s decision on Western RTOs?

§        RTO West won’t work without BPA

o      What’s role of states in reviewing modifications of RTOs? 

 

RTO West

 

§        Filing Proceedings

o      Suggest that FERC rule on the entire filing rather than proceeding in a piecemeal manner.  WA opposes telling FERC that it should make an all or nothing ruling.  Need to evaluate RTO West filing first; standard market design should come later.

§        Northwest Hydropower and no history of a tight power pool

o      Point out the Pacific Northwest is unique.  Because of this, the congestion management is a blend between what works in the Northwest and the PJM system.

§        RTO West Options

o      Point out that RTO West has a system of options (FTO’s), rather than obligations, to deal with existing contracts and their participation in the congestion management system.

§        RTO West should not have day-ahead energy market and FERC should support balanced schedules

§        Need to protect existing transmission contracts

 

WestConnect

 

 

CA ISO

§        Low hanging fruit

o      Market Monitoring

o      Coordinate transmission expansion planning across RTO groups

o      Price reciprocity

o      Common systems interface committee

§        Common FTR systems and optimization

§        FERC shouldn’t cherry pick the RTO proposals