X hits on this document

758 views

0 shares

0 downloads

0 comments

176 / 179

2009 State of the Market Report

External Transactions

regarding the difference in prices (because the transactions are scheduled in advance), one should not expect perfect convergence.

Our analysis is presented in a series of figures, each with two panels. The left panel in each is a scatter plot of the real-time price differences and the net imports in unconstrained hours. We expect to find imports into the Midwest ISO when the Midwest ISO prices are higher than prices in neighboring markets. The right side of each figure shows the monthly averages for hourly real-time price differences between the adjacent regions and the monthly average magnitude of the hourly price differences (average absolute differences). In an efficient market, prices at the interface should converge when the interfaces between the regions are not congested.

Figure 93: Real-Time Prices and Interface Schedules PJM and the Midwest ISO, 2009

MISO Price - PJM Price ($/MWh)

$200

$160

$120

$80

$40

$0

    • -

      $40

    • -

      $80

  • -

    $120

Absolute Average Price Difference

Average Price Difference

Feb Apr

Jun Aug

Oct Dec

$50

$40

$30

$20

$10

$0

  • -

    $10

  • -

    $20

  • -

    $30

MISO Price - PJM Price ($/MWh)

  • -

    $160

  • -

    $200

  • -

    4,000

Net Exports

Net Imports

  • -

    2,000

  • 0

    2,000 4,000

Net Imports (MW)

6,000

8,000

  • -

    $40

  • -

    $50

Midwest ISO interface prices in 2009 tended to be slightly higher than PJM’s, except in the fourth quarter. The absolute average price difference was just over $10 per MWh in 2009, down from almost $18 per MWh in 2008. The left-hand-side panel in the figure shows participants

Page 143

Document info
Document views758
Page views758
Page last viewedSun Dec 11 12:28:36 UTC 2016
Pages179
Paragraphs5369
Words52656

Comments