2009 State of the Market Report
The number of hours with market-to-market coordination on Midwest ISO flowgates spiked in March and November due to seasonal planned outages on transmission lines that resulted in reduced limits and more frequent west-to-east congestion. PJM market-to-market constraint coordination occurred most frequently during the summer and periods of high load.
Figure 69 summarizes the financial settlement of market-to-market coordination. The market-to- market settlement is based upon the reciprocating RTO’s actual market flows compared to its FFE. If the reciprocating RTO’s market flow is below its FFE, then it will receive a payment for the unused portion of its entitlement at its internal cost of providing that relief. Alternatively, if the RTO’s flow is above its FFE it will make a payment at the cost of the monitoring RTO’s congestion for only the flow in excess of its FFE. In the figure, the positive values represent payments made to the Midwest ISO on coordinated flowgates and the negative values represent payments made to PJM on coordinated flowgates. The drop line shows the net payment to (or from) the Midwest ISO in each month.
Figure 69: Market-to-Market Settlements 2008 – 2009
Settlements ($ Millions)
Estimated Underpayment Actual Payment to PJM Actual Payment to MISO Actual Net Payment
08 09 J F M A M J J A S O N D J F M A M J J A S O N D