1 / 16

Market Monitoring and Wholesale Power Transmission Issues

This presentation discusses the challenges and strategies related to monitoring and wholesale power transmission in the energy market. The Federal Energy Regulatory Commission's approach includes infrastructure development, effective rules, and a strategic approach to ensure competitive markets and reasonable outcomes. The presentation also covers the legacy challenges, transmission policy challenges, necessary investments, and the importance of market integrity.

mbatson
Download Presentation

Market Monitoring and Wholesale Power Transmission Issues

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market Monitoring and Wholesale Power Transmission Issues William F. Hederman, DirectorOffice of Market Oversight and Investigations Federal Energy Regulatory Commission Presented to:Carnegie Mellon UniversityPittsburgh, PADecember 16, 2004 WH-12-16-04

  2. Outline • Introduction • The Legacy of Legacies • Transmission Challenges • Monitoring Agenda - Organized Markets - Other Areas • Conclusion

  3. The FERC strategy to provide dependable, affordable energy through sustained competitive markets has 3 elements. Infrastructure Effective Rules Strategic Approach Rules Competitive Markets Just & Reasonable Outcomes Enforcement

  4. Background: This difficult transition suffers from a legacy of legacies. • Inadequate interconnections (reliability driven, not market driven) • Patchwork of laws/regulations/responsibilities (assumed service areas) • Many entrenched interests with varying objectives

  5. Transmission Policy Challenges • Market Power • Regional Planning • Reliability • Investment • Innovation • Transitions

  6. 6

  7. 7

  8. 8

  9. Investments We Need • Hardware -- AC and DC lines -- Substations, capacitors, sensors -- FACTS • Software -- State estimators -- System monitoring, evaluation, visualization, information sharing

  10. Wall Street Waits “There is a cap on how much I can earn and no floor on how much I can lose” J. Holzschuh, Managing Director Global Power Group Morgan Stanley

  11. Transmission Investment Source: Platts

  12. Monitoring approaches differ significantly by market conditions. Organized Markets -- Access assured -- Information rich -- Local monitoring -- Investment/mitigation challenges -- Seams Opaque Markets -- Access problematic -- Affiliate issues -- Little information

  13. Organized Markets Provide Options and Transparency 13

  14. Conclusion • Structural solutions appear best. • Effective rules plus monitoring and enforcement is a second-best solution. • Relative lack of investment in transmission has FERC’s attention.

  15. FERC is addressing transmission challenges. Initiatives include: -- Transmission policy -- Reliability Division -- Reactive Power conference

  16. Market Integrity is Everyone’s Business FERC Hotline: 1-888-889-8030

More Related