2009 State of the Market Report
and the day-ahead congestion in 2009 was $2.23 per MWh, down from $2.90 in 2008 and $3.07 in 2007.23
Starting in the middle of 2008, the direction of the congestion in WUMS switched due to transmission upgrades in the region (particularly the new Arrowhead-Weston 345 kV line) and additional improvements in 2009. The average annual difference between the auction value and the day-ahead congestion (shown in the chart below) was near zero overall in 2009. This indicates that the FTR markets are performing well overall. Figure 63 shows the same analysis for the off-peak hours.
Figure 63: Comparison of FTR Auction Prices and Congestion Value WUMS Area, 2007 – 2009: Off-Peak Hours
Value Relative to Cinergy Hub ($/MWh)
DA Congestion Auction Price
07 08 09 J F M A M J
J AS OND J FMAM J
J A S OND
Congestion was consistently negative into WUMS during off-peak hours, averaging -$4.27 per MWh. Volatility is considerably lower during off-peak hours than during peak hours. The average absolute monthly price difference between the auction price and the day-ahead
June 2008 is excluded from all the annual statistics in this section. It was highly anomalous due to heavy storm-related transmission damage.