North American Electricity Markets

APEXParis, France

October 15-16, 2007Kenneth Laughlin, PJM

North American Wholesale Electricity Markets

AESO

• Peak Load 9661 MW, November 2006

• Postage Stamp Transmission Pricing

• Some transmission congestion beginning to be experienced

• C$5 billion in new transmission upgrades by 2016

• Full Retail Access

• Regulated Rate Option available to small consumers

• Energy Only Market

• No plans to implement capacity market

• Separate market for ancillary services

California ISO• Peak Load 50,270 MWs

• Zonal energy market with redispatch to manage congestion within zones

• Comprehensive market redesign in progress – expect to move to nodal pricing in March 2008

• Resource adequacy requirement on load serving entities to demonstrate 115% of load can be met; capacity markets under discussion, decision expected in 2008.

ERCOT

• Peak Load 62,339 MWs

• 85% of Texas; Not subject to FERC other than reliability provisions of 2005 Energy Policy Act; 5 DC Ties

• 38,000 miles of Transmission

• Firm Transmission (PTP only)

• 71,800+ MW of Generation • Centralized registry for 6 million

retail choice customers • Nodal pricing in 2009• Energy only

ISO New England

• Peak Load 28,000 MW

• Implemented nodal pricing in 2003

• Implemented wholesale markets in 1999

• Locational Forward and real-time reserve markets

• New forward capacity market auction in February 2008 for capacity in June 2010

• Major new transmission projects completed or under construction

MISO RTO

• Peak load 129,647 MWs set July 21, 2007

• Market opened 1 April 2005

• Full nodal real time and day-ahead energy markets

• Territory encompasses fifteen states and one Canadian province

• Simultaneously co-optimised energy & ancillary services markets under development

• No capacity market envisioned

NBSO

• Peak Load 3,187 MW

• Postage Stamp Transmission Pricing- no significant transmission constraints

• Physical Bi-Lateral Market- Wholesale & Industrial Retail Participation- Resource Adequacy Requirement on Load Serving- Entities- Single Node Energy Imbalance Market

• Demand Response Under Development

New York ISO

♦ Energy: Real-Time and Day-Ahead full nodal♦ Ancillary Services: RT and DA

♦ Co-optimized with energy in both RT and DA

♦ Spinning and non-spinning reserves with scarcity pricing

♦ Regulation ♦ Installed Capacity (ICAP) – locational markets

♦ Transmission Congestion Contracts (TCCs)

♦ Virtual trading for both supply and demand

♦ Demand Side Resources may participate in the energy and capacity markets (ancillary services under development)

Ontario Market Operator

• Peak Load 27,000 MWs

• 5 minute wholesale spot market, single market clearing price

• Design of future Day-Ahead Market currently being discussed with stakeholders

• Development of new generation underway via centralized contracting to allow the shutdown of all coal plants by 2014

PJM• Peak load 145,000 MWs

• Full nodal markets (real time and day-ahead)

• Integrated five additional companies into market area between 2002 and 2006.

• Implemented a locational capacity market in 2007

• August 2007 monthly billing > $ 4,000,000,000

SPP

• Peak Load 43,346 MW, August 2007

• Full nodal energy imbalance energy market operational in February 2007

• Transmission Services market

• No retail open access in footprint

Peak Load Nodal pricing

Retail Markets

Capacity market

AESO 9661 No Yes No

California ISO 50,270 2008 No under discussion

ERCOT 62,400 2009 Yes No

ISO-NE 28,000 2003 Yes Yes. (locational in 2008)

MISO 129,647 2005 Partial No

NYISO 34,000 1999 Yes Yes. And additional

forward markets under discussion.

NBSO 3,187 No Partial NoOntario Market OperatorIESO

27,000 No Yes Future

PJM 145,000 1998 Yes Yes (locational).

SPP 43,346 2007 No Future