Msa Finds New Rules May Be Affecting Price Fidelity

摘要

A Market Surveillance Administrator (MSA) analysis of the Quick Hits rules package - representing perhaps the most significant change in Alberta Electric System Operator (AESO) rules since market opening - implemented in early December 2007 has affected the marketrnThe MSA analysis concluded:rn1. a high degree of stickiness around the reference price may be resulting in harm to pricing fidelity;rn2. participation in the dispatch down service (DDS) market suggests that payments are sufficiently attractive to some generators to influence their offer behaviour that suggests these operators would not offer at such low prices and the result is that a portion of the apparent reconstitution of Pool price for transmission must run (TMR) energy is not occurring;rn3. the release of more information about the DDS market starting in March 2008 does not yet seem to have led to a noticeable improvement in market efficiency; andrn4. the impact of DDS market and the reference price on the determination of IESO pricing are not well represented in the AESO's forecast, which results in its estimates exhibiting bias and poor accuracy.