[Federal Register: April 8, 2005 (Volume 70, Number 67)]
[Notices]
[Page 17993]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08ap05-51]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. PL05-6-000]
Establishing Reference Prices for Mitigation in Markets Operated
by Regional Transmission Organizations and Independent System
Operators; Notice Inviting Comments on the Establishment and Use of
Reference Prices
April 1, 2005.
The Commission invites all interested persons to file comments
addressing the roles of Regional Transmission Organizations (RTOs),
Independent System Operators (ISOs) or their market monitors (or
contractors) in establishing reference prices to mitigate bids in order
to limit non-competitive results in wholesale electric markets. The
comments may focus on particular geographic region(s) of the United
States or upon energy markets in general. A Commission staff document,
which is appended to this notice as Attachment A, provides general
background on ways that reference levels are calculated and how they
are used.
The Commission is particularly interested in comments that address
the following questions for RTOs and ISOs that use the conduct and
impact approach to mitigation:
1. In practice: (a) When are reference prices used; (b) by whom are
they developed; (c) what can be their effect, if any, on the wholesale
market-clearing price and wholesale rates for electric energy; and (d)
how often do they affect market-clearing prices?
2. In what ways do reference prices in the wholesale market
function like bid caps, and in what ways are they like formula rates?
3. Under what circumstances do RTOs, ISOs, their market monitors,
or their consultants use discretion in setting reference prices? What
is the nature of the discretion used? Is their discretion within the
parameters prescribed in the RTO or ISO's Commission-approved, filed
tariff? Is discretion necessary in determining reference prices? If so,
under what circumstances is discretion necessary? Can reference prices
be developed without discretion on the part of the RTO, ISO or market
monitor?
a. If RTOs, ISOs, their market monitors, or their consultants
exercise discretion within the parameters prescribed in the RTO or
ISO's Commission-approved, filed tariff, is such discretion an
impermissible delegation of the Commission's authority or is it a
permissible implementation of a Commission-approved tariff? With
respect to possible impermissible delegations of authority, does it
make a difference if it is the RTO, ISO or an internal market monitor
that exercises discretion within the parameters of a Commission-
approved, filed tariff, or if it is an external market monitor or other
consultant that exercises such discretion?
b. How often do RTOs, ISOs and their market monitors consult with
individual market participants to determine the appropriate reference
prices(s) for that market participant's unit(s)? How is the
consultation process carried out? Is this consultation process
appropriate?
c. How do RTOs, ISOs and their market monitors resolve
disagreements with market participants about methods used to determine
their individual reference prices, or about the data used to calculate
their reference prices?
4. Is there a reason why reference prices, once set, would need to
be adjusted quickly?
5. How often are reference prices set based on the market monitor
or RTO/ISO's estimate of a unit's generating costs, compared to other
methods of calculating reference prices?
6. To the extent that the RTO, ISO or market monitor may affect the
market-clearing price at one or more locations and time intervals by
determining reference prices, is there a better system that can be
employed to mitigate bids?
a. Should some method other than reference prices within a conduct
and impact approach to mitigation be used? If so, what method? Would
this alternative method involve discretion on the part of the market
monitor, ISO or RTO?
b. Reference prices could be developed by the market monitor, but
submitted to the Commission for its approval. Should reference prices
be set in that manner?
The Commission encourages electronic submission of comments in lieu
of paper using the ``eFiling'' link at http://www.ferc.gov. Persons
unable to file electronically should submit an original and 14 copies
of the comment to the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426.
All filings in this docket are accessible on-line at http://www.ferc.gov
, using the ``eLibrary'' link and will be available for
review in the Commission's Public Reference Room in Washington, DC.
There is an ``eSubscription'' link on the Web site that enables
subscribers to receive e-mail notification when a document is added to
a subscribed docket(s). For assistance with any FERC Online service,
please e-mail FERCOnlineSupport@ferc.gov, or call (866) 208-3676 (toll
free). For TTY, call (202) 502-8659.
Comment Date: 5 p.m. Eastern Time on May 2, 2005.
Magalie R. Salas,
Secretary.
[FR Doc. E5-1633 Filed 4-7-05; 8:45 am]
BILLING CODE 6717-01-P