How much do wholesale energy markets need to change? -- A Utility Markets Today webinar
Join ERCOT Independent Market Monitor Director Beth Garza, Harvard Kennedy School Professor of Global Energy Policy William Hogan, PJM Senior Director of Market Operations Adam Keech and McCullough Research Principal Robert McCullough.
The Federal Energy Regulatory Commission (FERC) has been looking at universal changes to its market rules and just recently released a notice of proposed rulemaking (NORP) to tweak the markets. The NOPR is seeking to ensure that market settlement and dispatch intervals are aligned and that energy markets enter shortage conditions when any single interval warrants that. The commission has said that other changes, including possible revisions to the long-standing $1,000/MWH offer cap, will be coming as well.
The Electric Reliability Council of Texas (ERCOT) is also starting to look at tweaks to its model after major changes were made several years ago in an effort to attract more capacity to the one market where demand continued to grow. The higher $9,000/MWH price and the Operating Reserves Demand Curve (ORDC) have done that and now reserve margins look much better. But with some experience, ERCOT and the Texas Public Utilities Commission are starting to look at possible tweaks to the rules.
Underlying all of these discussions is cheap natural gas, which, while it has gone up and down in recent years, it has never come close to the prices seen before the shale revolution and the great recession. Cheap gas makes nuclear and coal plants less profitable, which has led many of their owners to seek additional payments outside of the market and to favor major changes to wholesale market rules. Many plants have retired and many firms have either hedged their bets with retail and regulated investments, or just gotten out of the markets all together.
* Beth Garza, director, ERCOT Independent Market Monitor
* William Hogan, professor of global energy policy, Harvard Kennedy School
* Adam Keech, senior director of market operations, PJM
* Robert McCullough, principal, McCullough Research
KEY LEARNING POINTS
* How do wholesale energy markets need to evolve?
* Why do wholesale energy markets need to change now, after 15 years of restructuring?
* What impact will FERC's recent NOPR on shortage pricing and aligning dispatch with market settlements have?
* What else should FERC change about energy markets, such as the long-standing $1,000/MWH price caps?
* How much can tinkering with energy market design offset $2-3/MMBTU natural gas?
* What changes are being discussed in ERCOT such as updating the ORDC?
* Ask your own questions during the live Q&A session.
About the webinar:
Get expert insight on the future of wholesale energy markets by registering for or downloading the recording of Utility Markets Today webinar titled “How much do wholesale energy markets need to change?” scheduled for Thursday, December 3, 2015, from 2-3:30 PM US Eastern Time. Call +1-301-769-6812 (1-888-637-7776 toll-free in the US and Canada) or visit http://www.utilitymarketstoday.com/
About Utility Markets Today
Utility Markets Today's mission is to deliver exclusive news chronicling ongoing efforts to build competitive wholesale and retail utility markets with in-depth analysis on why some fail and others succeed. Utility Markets Today is published 245 times a year by Modern Markets Intelligence Inc. (MMI), publisher of independent trade news for the evolving energy industry of the 21st century. It is located in Rockville, Md. Sam Spencer founded MMI in 2009 after writing, editing, marketing, publishing, running and inventing trade news publications and related products for three decades.
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