We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byTyrone Albert May
Modified over 6 years ago
The Continuing Evolution of U.S. Electricity MarketsDavid LaPlante APEX Conference October 15, 2007
State Governments Regulate Retail Power Background Federal Government Regulates Wholesale Power (Federal Energy Regulatory Commission –FERC) State Governments Regulate Retail Power Coordinating State And Federal Policies Is Difficult Evolved In Response To Abuses In Early Electricity Markets In 1920s 1935 – Regulatory Framework Stayed Constant Vertically Integrated Utilities Dominated The Industry Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Evolution to Markets Why the Move to MarketsNational Policies Favoring Deregulation (Airlines, Telecom) 1970s Energy Crises Public Utility Regulatory Policies Act of 1978 (PURPA) Enables limited emergence of Non-Utility Generating Companies Energy Policy Act of 1992 Eases restrictions on Non-Utility Generators Expands FERC’s authority over transmission service FERC issues Order 888 in 1996 Open Transmission System to All Many Regions responded by creating regional markets ISOs and RTOs created to run the regional power markets Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Wholesale Power Markets, March 2007Source: Federal Energy Regulatory Commission Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Regional Market DifferencesMarkets Based on Locational Marginal Pricing ISO-NE, New York, PJM, Midwest ISO Locational Marginal Pricing Under Development CAISO, Texas Single Price Markets Ontario, Alberta, Southwest Power Pool Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Evolution of Retail CompetitionHigh Cost Electricity States Began Looking At Retail Competition In Mid-1990s California, Northeast, Mid-Atlantic States Seen as a way to reduce costs Some States Forced Utilities To Sell Generation California, New York, New England, Have Not Required Retail Customers To Find Their Own Supply Of Electricity The States Are Procuring Energy Through Auctions Or Request For Proposals Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Status of State Electric Industry Restructuring Activity as of February 2003Source: U.S. Energy Information Administration ttp:// Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Summary of Market ExperienceElectricity Prices in Markets low through 2004 Low Natural Gas Prices Marginal Cost Lower than Average Costs Significant Amounts of New Generation Built Privately Significant Overbuilding in some Areas (Texas, New England) Consumers shielded from bankruptcies caused by overbuilding Increased Efficiency of Operations Availability of Generators increased Nuclear Unit Availability increased significantly Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Challenges Facing Markets in the USANatural Gas Prices Increased In 2005 Caused Electricity Prices To Rise Average Cost Is Now Lower Than Marginal Cost Certain States/ Supporters Of Markets Having Second Thoughts Uncertainty Over Carbon Reduction Costs California/10 Northeastern States Have own Approaches Prospect For National Legislation Uncertain Fully Integrating Demand Into The Markets Attracting New Investment Capacity Markets State Mandates Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Gathering Issues Enhancing the role of demand response in organized markets Greater use of market prices to elicit demand reductions during a power shortage Providing more opportunities for long-term power contracting Strengthening market monitoring Improving responsiveness to customers and other stakeholders Evolution of U.S. Power Markets © 2007 ISO New England Inc.
Demand Response Commissioner Suedeen Kelly June 3, 2008.
Achieving Price-Responsive Demand in New England Henry Yoshimura Director, Demand Resource Strategy ISO New England National Town Meeting on Demand Response.
1 Shocking Issues in Electricity Contracts By: Craig Enochs, Jackson Walker, L.L.P., Houston, Texas John R. Werner, Constellation NewEnergy, Inc., Houston,
Wholesale Restructuring 1.PURPA 2.Market based wholesale rates 3.Incentive rates 4.Energy Policy Act of 1992 Clarified power to order third party wheeling.
The Single Electricity Market in Ireland
EMIG Electricity Market Investment Group Presentation to the Ontario Energy Board February 17, 2004.
11 Presentation for ERCOT ETWG FERC Notice of Proposed Rulemaking: Frequency Regulation Compensation in the Organized Wholesale Power Markets (RM )
History of Natural Gas in the US In early 1800s, they used manufactured gas to light the streets in the US By 1850, almost 300 separate gas companies In.
NARUC-FERC Demand Response Collaborative Meeting NARUC Fall Meeting Anaheim, CA T. Graham Edwards President & CEO November 11, 2007.
Midwest Demand Response Initiative Kick-off Meeting Bob Lieberman, Commissioner, Illinois Commerce Commission John Norris, Chairman Iowa Utilities Board.
Regional Transmission Organizations: The Future of Transmission? Dave Edwards 4/17/2004.
Bringing about beneficial change... POLICY DIALOGUE ON CORPORATE GOVERNANCE IN CHINA Presentation by Patricia Leahy, Director, UK National Audit Office.
A Primer on Electric Utilities, Deregulation, and Restructuring of U.S. Electricity Markets W.M. Warwick July 2000 Revised May 2002.
Chapter 1 – A Brief History We are transitioning from regulation to deregulation for many of our telecommunication, natural gas, and electricity sectors.
1 RELIABILITY AND COMPETITIVE ELECTRICITY MARKETS POWER Research Conference UC Berkeley March 19, 2004 Paul Joskow MIT, CEEPR, CMI and Jean Tirole IDEI,
BA212: Class 2 An Overview of the Natural Gas and Electricity Industries.
The 1970s - setting the stage The 1970s: –World energy price shocks, aggravated by U.S. price controls and shortages –Growth of environmentalism, fears.
Electric Utility Basics An overview of the electric industry in New England and the operation of consumer-owned utilities 1.
North American Electricity Markets APEX Paris, France October 15-16, 2007 Kenneth Laughlin, PJM.
Does Deregulation in Electricity Lead to Lower Consumer Prices? Evidence from U.S. Utility Companies Research question: Does deregulation of electricity.
© 2021 SlidePlayer.com Inc. All rights reserved.