Pricing Logic Under Flexible Modeling of COG Units	Back to Previous Page  Download Adobe Reader

Background Constrained Output Generation (COG) units are those that have a very small, or even no dispatchable range. Because of these constraints, COG units are generally unable to set Market Clearing Prices. It is sometimes the case, however, that COG units, which are generally fast-ramping gas turbine units, are critical in meeting local power needs. Under MRTU, therefore, FERC has mandated that COG units be modeled as flexible in order to be able to set prices when they are marginal. In its review of the MRTU market design several years ago, the Law and Economics Consulting Group (LECG) identified a potential "stuck price" problem that could result when COG units are modeled as flexible, but technical constraints prevent flexible units from displacing a COG unit as the price-setter. The purpose of this Stakeholder effort is to assess the potential magnitude of COG Pricing issues under MRTU, and to evaluate what, if any, design change is warranted to addresses the "stuck price" problem and other potential pricing issues associated with the flexible modeling of COG units. Any changes made to the MRTU design would be implemented in Market Release 1A to be launched within one year of MRTU start-up.

Outcome Pending closure of initiative

Process

Relevant Market Notices

Final Proposal for COG Pricing Final Proposal for Pricing Logic Under Flexible Modeling of COG Units pdf 266K | Abstract | 05/09/2008 17:04

Draft Final Proposal for COG Pricing PG&E Comments on COG Pricing Draft Final Proposal 30-Apr-2008 pdf 80K | Abstract | 05/01/2008 16:02 SCE Comments on COG Pricing Draft Final Proposal 30-Apr-2008 pdf 83K | Abstract | 05/01/2008 15:57 Stakeholder Comments Template - COG Pricing Draft Final Proposal doc 34K | Abstract | 04/23/2008 11:59 Presentation - Draft Final Proposal for Pricing Logic Under Flexible Modeling of COG Units 21-Apr-2008 pdf 401K | Abstract | 04/18/2008 16:26 Draft Final Proposal for Pricing Logic Under Flexible Modeling of COG Units pdf 258K | Abstract | 04/14/2008 17:57

Stakeholder Comments on Straw Proposals on DEC Bidding and COG Pricing CPUC Comments on DEC Bidding Straw Proposal 02-Apr-2008 pdf 27K | Abstract | 04/08/2008 11:26 Dynegy Comments on DEC Bidding Straw Proposal 25-Mar-2008 pdf 11K | Abstract | 03/26/2008 15:31 PG&E Comments on COG Pricing Straw Proposal 24-Mar-2008 pdf 67K | Abstract | 03/25/2008 14:09 PG&E Comments on DEC Bidding Straw Proposal 24-Mar-2008 pdf 69K | Abstract | 03/25/2008 14:13 Powerex Comments on DEC Bidding Straw Proposal 07-Mar-2008 pdf 22K | Abstract | 03/20/2008 16:05 SCE Comments on COG Pricing Straw Proposal 24-Mar-2008 pdf 130K | Abstract | 03/25/2008 14:05 SCE Comments on DEC Bidding Straw Proposal 24-Mar-2008 pdf 112K | Abstract | 03/25/2008 14:18 WPTF Comments on COG Pricing Straw Proposal 25-Mar-2008 pdf 66K | Abstract | 03/28/2008 16:14 WPTF Comments on DEC Bidding Straw Proposal 25-Mar-2008 pdf 93K | Abstract | 03/26/2008 13:03

Straw Proposals on DEC Bidding and COG Pricing Logic Presentation - DEC Bidding and COG Pricing: Review of Straw Proposals 17-Mar-2008 pdf 334K | Abstract | 03/17/2008 09:31 Straw Proposal for the DEC Bidding Activity Rule 07-Mar-2008 pdf 236K | Abstract | 03/07/2008 16:17 Stakeholder Comments Template - DEC Bidding Rule Straw Proposal 11-Mar-2008 doc 43K | Abstract | 03/12/2008 09:04 Straw Proposal for Pricing Logic Under Flexible Modeling of COG Units 07-Mar-2008 pdf 246K | Abstract | 03/07/2008 16:21 Stakeholder Comments Template - COG Pricing Straw Proposal doc 41K | Abstract | 03/11/2008 15:31

Initial Stakeholder Comments on DEC Bidding Rule and COG Pricing Logic CPUC Comments on DEC Bidding Rule 15-Feb-2008 pdf 30K | Abstract | 02/20/2008 07:48 Dynegy Comments on DEC Bidding Rule 15-Feb-2008 pdf 9K | Abstract | 02/15/2008 15:52 PG&E Comments on COG Pricing and Dec Bidding 22-Feb-2008 pdf 65K | Abstract | 02/25/2008 10:36 PG&E Comments on DEC Bidding Rule 15-Feb-2008 pdf 17K | Abstract | 02/19/2008 15:26 PG&E Comments on COG Pricing 15-Feb-2008 pdf 110K | Abstract | 02/19/2008 15:38 SCE Comments on DEC Bidding Rule and COG Pricing 15-Feb-2008 pdf 52K | Abstract | 02/19/2008 08:20 WPTF Comments on DEC Bidding Rule 15-Feb-2008 pdf 70K | Abstract | 02/20/2008 07:45 WPTF Comments on COG Pricing 19-Feb-2008 pdf 87K | Abstract | 02/20/2008 10:33

Market Surveillance Committee/Stakeholder Meeting 08-Feb-2007 Template for Stakeholder Comments - DEC Bidding Rule doc 40K | Abstract | 02/12/2008 09:49 Template for Stakeholder Comments - COG Pricing Logic doc 41K | Abstract | 02/12/2008 09:51 Presentation - Modifying the DEC Bidding Activity Rule on Day Ahead Schedules 08-Feb-2008 pdf 290K | Abstract | 02/05/2008 14:16 Presentation - Pricing Logic Under Flexible Modeling of COG Units 08-Feb-2008 pdf 367K | Abstract | 02/05/2008 14:18

Market Release 1A Final - DEC Bidding - Issue Paper 01-Feb-2008 pdf 92K | Abstract | 02/01/2008 16:12 Issue Paper - Pricing Logic Under Flexible Modeling of COG Units 01-Feb-2008 pdf 129K | Abstract | 02/01/2008 16:13