[Federal Register Volume 70, Number 67 (Friday, April 8, 2005)]
[Notices]
[Page 17993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1633]


-----------------------------------------------------------------------

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 [email protected], 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