Con Edison Wants New York Market Rules Tightened
LCG, March 5, 2001Consolidated Edison Co. of New York said Friday that it has asked the Federal Energy Regulatory Commission to tighten up wholesale electricity market rules in New York State to prevent power plant owners from exercising market power."The original market power mitigation measures were established before the New YorkIndependent System Operator became operational. As the market for electricity in New York has evolved, we can clearly see that there are some loopholes in those measures. This filing is aimed at closing the loopholes and providing customers greater protection against higher electricity prices when the marketplace is not competitive," said Kevin Burke, president of Con Edison.Burke said the company has identified "loopholes" that could add as much as $20 million to the cost of wholesale power in some months.Con Edison wants FERC to prevent in advance all the bad things California power producers have been accused of in hindsight. The company wants to prevent generators from "gaming" the system, wants protections on bidding behavior for must-run plants, wants to discourage plant operators from withholding power in order to drive up prices, and more.
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