Trading on the index: Spot markets and price spreads in the Western interconnection

Journal Article · Tue Oct 01 04:00:00 EDT 1996 · Fortnightly

OSTI ID:482415

McCullough, R ^[1]

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1. McCullough Research, Portland, OR (United States)

For the past 20 years, the Western Systems Coordinating Council (WSCC) has built a reputation for innovation in electric markets. Today, with members in the United States, Canada, and Mexico that serve customers from the Pacific Ocean to the Plains states, and with over 140,000 megawatts (Mw) of generation and transmission stretched across three countries, the WSCC continues to lead change in power markets. Transparent pricing has become a reality throughout the region. Last year the Pacific Northwest subregion of the WSSC counted eight large (50 megawatts or more) industrial contracts with spot pricing. Puget Sound Power and Light recently proposed to shift all of its major customers to spot pricing when its current merger proceeding closes. The New York Mercantile Exchange (NYMEX) offers future trading at Palo Verde and the California/Oregon border (COB). Alberta`s new power pool adds a third market-price indicator. Soon we may see spot pricing for bulk power throughout the Western Power Exchange (WEPEX). This growing emphasis on spot pricing turns attention to pricing mechanics.

• OSTI ID: 482415
• Journal Information: Fortnightly, Journal Name: Fortnightly Journal Issue: 18 Vol. 134; ISSN FRTNE8
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPETITION
DEREGULATION
ELECTRIC POWER
ELECTRIC UTILITIES
INTERCONNECTED POWER SYSTEMS
PRICES
SPOT MARKET
SUPPLY AND DEMAND