EIX » Topics » Market Redesign Technical Upgrade

These excerpts taken from the EIX 10-K filed Feb 27, 2008.
Market Redesign Technical Upgrade
 
In early 2006, the ISO began a program to redesign and upgrade the wholesale energy market across ISO’s controlled grid, known as the MRTU. The programs under the MRTU initiative are designed to implement market improvements to assure grid reliability, more efficient and cost-effective use of resources, and to create technology upgrades that would strengthen the entire ISO computer system. The redesigned California energy market under the MRTU is expected to include the following new features, among others, which are not part of the current ISO real-time only market:
 
•   An integrated forward market for energy, ancillary services and congestion management that operates on a day-ahead basis;
 
•   Congestion management that represents all network transmission constraints;
 
•   CRRs to allow market participants to manage their costs of transmission congestion (see “SCE: Market Risk Exposures — Commodity Price Risk” for further discussion);
 
•   Local energy prices by price nodes (approximately 3,000 nodes in total), also known as locational marginal pricing; and
 
•   New market rules and penalties to prevent gaming and illegal manipulation of the market as well as modifications to certain existing market rules.
 
The MRTU was scheduled for implementation on March 31, 2008 and has been delayed to the fall of 2008. No new implementation date has been announced. Power will be scheduled on a nodal basis, rather than the current zonal system, which will aid in grid reliability and congestion management. Furthermore, the MRTU will incorporate the CPUC’s resource adequacy requirements to ensure that there are adequate energy resources in critical areas. The MRTU will not affect how costs are recovered through rates. SCE continues to work with the ISO to develop the MRTU.
 
Market
Redesign Technical Upgrade



 



In early 2006, the ISO began a program to redesign and upgrade
the wholesale energy market across ISO’s controlled grid,
known as the MRTU. The programs under the MRTU initiative are
designed to implement market improvements to assure grid
reliability, more efficient and cost-effective use of resources,
and to create technology upgrades that would strengthen the
entire ISO computer system. The redesigned California energy
market under the MRTU is expected to include the following new
features, among others, which are not part of the current ISO
real-time only market:


 


















































•  
An integrated forward market for energy, ancillary services and
congestion management that operates on a day-ahead basis;
 
•  
Congestion management that represents all network transmission
constraints;
 
•  
CRRs to allow market participants to manage their costs of
transmission congestion (see “SCE: Market Risk
Exposures — Commodity Price Risk” for further
discussion);
 
•  
Local energy prices by price nodes (approximately 3,000 nodes in
total), also known as locational marginal pricing; and
 
•  
New market rules and penalties to prevent gaming and illegal
manipulation of the market as well as modifications to certain
existing market rules.


 



The MRTU was scheduled for implementation on March 31, 2008
and has been delayed to the fall of 2008. No new implementation
date has been announced. Power will be scheduled on a nodal
basis, rather than the current zonal system, which will aid in
grid reliability and congestion management. Furthermore, the
MRTU will incorporate the CPUC’s resource adequacy
requirements to ensure that there are adequate energy resources
in critical areas. The MRTU will not affect how costs are
recovered through rates. SCE continues to work with the ISO to
develop the MRTU.


 




This excerpt taken from the EIX 10-Q filed Nov 2, 2007.

Market Redesign Technical Upgrade

In early 2006, the ISO began a program to redesign and upgrade the wholesale energy market across ISO’s controlled grid, known as the MRTU. The programs under the MRTU initiative are designed to implement market improvements to assure grid reliability, more efficient and cost-effective use of resources, and to create technology upgrades that would strengthen the entire ISO computer system. The redesigned California energy

 

52


Table of Contents

market under the MRTU is expected to include the following new features, among others, which are not part of the current ISO real-time only market:

 

 

An integrated forward market for energy, ancillary services and congestion management that operates on a day-ahead basis;

 

 

Congestion management that represents all network transmission constraints;

 

 

CRRs to allow market participants to manage their costs of transmission congestion (see “SCE: Market Risk Exposures—Commodity Price Risk” for further discussion);

 

 

Local energy prices by price nodes (approximately 3,000 nodes in total), also known as locational marginal pricing; and

 

 

New market rules and penalties to prevent gaming and illegal manipulation of the market as well as modifications to certain existing market rules.

The MRTU is scheduled for implementation on March 31, 2008. Power will be scheduled on a nodal basis, rather than the current zonal system, which will aid in grid reliability and congestion management. Furthermore, the MRTU will incorporate the CPUC’s resource adequacy requirements to ensure that there are adequate energy resources in critical areas. The MRTU will not affect how costs are recovered through rates. SCE continues to work with the ISO to develop the MRTU.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki