2009 State of the Market Report
High day-ahead load scheduling and low fuel prices contributed to lower RSG costs. RSG payments exceeded $5 million per week only once during 2009, compared to 11 weeks in 2008.
Figure 42: Weekly RSG Payment Distribution by Region 2009
Capacity Commits for High Load in East and Central
Real-Time RSG Distribution
S-to-N Congestion into Minnesota
Local Voltage Congestion in East
Mild Summer Weather, Little RSG
Transmission Outages Related to Upgrades in Michigan (East)
In the figure, the text boxes point out some of the notable instances of RSG payments. Many of the highest weekly RSG costs were caused by transmission congestion. Early in 2009, the West region incurred more RSG costs than during the rest of 2009 due to extreme winter weather and forced generator outages. However, RSG payments in the West were 63 percent lower in 2009 than in 2008. The East region had the largest share of RSG costs (45 percent) due to transmission outages on market-to-market flowgates and transmission outages related to transmission upgrades in Michigan. The latter were particularly prevalent in the fall. In addition, many of the lowest-cost units to commit for capacity are in the East region. Finally, reduced congestion into WUMS, as a result of significant transmission upgrades, contributed to a 66 percent year-over-year reduction in RSG payments to units within WUMS.