[Federal Register: November 27, 2007 (Volume 72, Number 227)]
[Notices]
[Page 66164-66165]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27no07-77]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket Nos. ER07-1372-000, ER07-1372-001]
Midwest Independent Transmission System Operator, Inc.; Notice of
Staff Technical Conference
November 19, 2007.
Take notice that on December 6, 2007, a staff technical conference
will be held
[[Page 66165]]
at the Federal Energy Regulatory Commission to discuss the market power
analysis and mitigation measures set forth in the Midwest Independent
Transmission System Operator, Inc.'s (Midwest ISO) ancillary services
market proposal. This technical conference was established in an Order
Establishing Technical Conference in the above-captioned dockets,
issued November 19, 2007. It will be held in the Commission Meeting
Room at the headquarters of the Federal Energy Regulatory Commission,
888 First Street, NE, Washington, DC from 9 a.m.-4 p.m. (EST).
The technical conference will be divided into two sessions. The
first session will address market power issues and the second session
will address mitigation issues. The format of the conference and
sessions will be as follows:
Staff and Midwest ISO Introduction To Conference: 9-9:15.
First Session: Market Power Issues:
Independent Market Monitor (IMM) Presentation Addressing Appendix
Questions: 9:15-9:45.
(See attached Appendix to this Notice)
Questions and Issues From Parties: 9:45-11:30.
Staff Follow-up Questions: 11:30-12.
Lunch: 12-1.
Second Session: Mitigation Issues:
IMM Presentation Addressing Appendix Questions: 1-1:30.
Questions and Issues From Parties: 1:30-3:15.
Staff Follow-up Questions: 3:15-3:45.
Next Steps; 3:45-4.
The conference is open for the public to attend. The conference
will not be transcribed and telephone participation will not be
available.
The Commission will accept written comments on the discussion at
this technical conference no later than 5 p.m. Eastern Time on December
20, 2007, and reply comments no later than 5 p.m. Eastern Time on
January 7, 2008.
Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations please
send an e-mail to accessibility@ferc.gov or call toll free 1-866-208-
3372 (voice) or 202-208-1659 (TTY), or send a FAX to 202-208-2106 with
the required accommodations.
For more information about this conference, please contact: John
Nail, Office of Energy Market Regulation, Federal Energy Regulatory
Kimberly D. Bose,
Secretary.
Appendix
The following questions pertain to aspects of the Midwest ISO
proposal that require further clarification. The Midwest ISO is
requested to provide materials at the conference addressing these
questions and to be prepared to discuss them. The Midwest ISO should
provide its full and complete answers to all questions for the
record of this proceeding in its filing of comments.
Questions To Be Discussed in the First Session
Provide a market power analysis for the spring and fall
shoulder seasons. Present the results of the new analysis at the
technical conference.
The definition of ancillary services sub-markets:
Provide the basis for how the sub-markets and reserve
zones are defined and explain the differences between the two.
Is the IMM market power analysis for only illustrative
purposes or is it intended to be relied on in this proceeding?
How will the potential for market power be evaluated as
a result of any zonal reconfiguration?
Either submit separate analyses for spinning and
supplemental reserves or provide an analysis demonstrating that the
two products are substitutes for each other. Present the results of
the analysis at the technical conference.
Provide historical data, separately for each ancillary
services product (regulating reserves, spinning reserves and
supplemental reserves), since the start of the Midwest ISO energy
markets that indicates: (1) The capacity (in MWs) and number of
generator resources that could provide ancillary services; and (2)
the actual ancillary services provided, in MW and number of
generator resources. Present the results of the analysis at the
technical conference.
Questions To Be Discussed in the Second Session
What is the basis for the IMM's conclusion that there
will be sufficient competition to ensure just and reasonable prices
in those hours and locations when mitigation thresholds are not
triggered?
Explain how reference levels are determined for
suppliers in constrained areas, such as those identified in the IMM
analysis. In his testimony, the IMM indicates reference levels are
based on competitive offers. Please provide the basis for this
assertion and explain whether all offers by suppliers in constrained
areas are considered to be offers made under competitive conditions.
If not, how does the IMM determine which offers are made under
competitive conditions?
Is a backstop reference price, such as is used in the
New York Independent System Operator (NYISO), appropriate for sub-
markets with only one or two suppliers? Explain the reasons
underlying your response.
Considering the market power characteristics of the
Midwest ISO ancillary services market and its sub-markets, what are
the pros and cons of conduct/impact mitigation compared to
mitigating offers at a cost-based rate?
What method and criteria will the IMM use to audit and
identify any supplier that withholds power in either the energy or
ancillary services markets, including during periods of scarcity
pricing?
The Midwest ISO states that variations of how it
intends to mitigate its ancillary services market are being used by
existing RTOs/ISOs. Explain the similarities and differences between
the Midwest ISO mitigation proposal and the PJM Interconnection
(PJM) and California Independent System Operator (CAISO) ancillary
services markets mitigation programs.
The Midwest ISO states that there are no unreasonable
barriers to entry that would compromise the competitiveness of the
Regulating Reserve market. Prospectively, what will the Midwest ISO
do to ensure a lack of barriers to entry and encourage suppliers to
bid into the congested submarket areas?
[FR Doc. E7-23038 Filed 11-26-07; 8:45 am]
BILLING CODE 6717-01-P