A market-based proposal for transmission pricing

✍ Scribed by Richard D. Tabors

• Publisher: Elsevier Science
• Year: 1996
• Tongue: English
• Weight: 582 KB
• Volume: 9
• Category: Article
• ISSN: 1040-6190
• DOI: 10.1016/s1040-6190(96)80459-3

✦ Synopsis

A Market-Based Proposal for Transmission Pricing

FERC has suggested that a capacity reservation tariff system might replace the current pro forma tariffs of Order 888. Use of periodic multi-round auctions, in conjunction with transmission zones and inter-zonal transfer capabilities and an active secondary market, could assure fair and open access and minimize regulatory oversight. Richard D. Tabors T his article describes a system for trading in transmission capacity at market-based prices. The proposed system should offer unbundled transmission on a nondiscriminatory openaccess basis, consistent with the Federal Energy Regulatory Commission's Order No. 888. It is also intended to offer that service to all transmission users on the same basis as proposed in the Commission's pending rulemaking proposal on capacity reservation tariffs (CRTs) in Docket No. RM96-11-000.

There are seven primary criteria by which this proposal should be judged.