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Loop Flow Scam Update

Posted in Electricity Transmission,USA Federal by Cheryl Morgan on the August 26th, 2008

Over at Knowledge Problem, Michael Giberson has an update to the story about the artificial congestion scam that affected NYISO and PJM. Giberson quotes Power Markets Week as saying that FERC is indeed conducting an investigation into the affair. Whether something will be done about it is another matter. PMW says:

Getting something like multiregional coordinated dispatch could solve a number of these issues, sources said, however the move would be extremely difficult because RTOs would lose some autonomy with a super pool, and states may be reluctant to give up some control.

Also, sources said some participants, particularly generators, may be reluctant to see better coordination because it may take away some profitable opportunities such as when price spikes occur across RTO borders.

And then someone will come along and claim that this is a clear case of “market failure”.

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