North American Markets Status

©2003 PJM

North American Markets Status

APEx meetingLeipzig, Germany

October 10-12, 2004Kenneth W. Laughlin

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California ISO

• Peak Load 46,000 MWs

• Zonal energy market with redispatch to manage congestion within zones

• Comprehensive market redesign – expect to move to nodal pricing in 2007

• No capacity market

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Grid West (NWPP Area)

• Peak Load 58,000 MWs

• Markets are under discussion and will probably not begin for at least three years, but are expected to include:– Nodal Pricing– Transmission Rights for full footprint– Real Time Energy for about 38,000 MW

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Alberta Electric System Operator

Peak load 9,000 MWs

Wholesale generation market opened in 1996; Retail competition opened in 2001

Wholesale real time energy market with a single market clearing price

Future consideration of day-ahead market, unit commitment, and capacity Market

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SPP

• Peak Load 48,000 MWs

• Full nodal energy imbalance energy market expected to become operational in 2005

• Transmission Services market

• No retail open access in footprint

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ERCOT

• Peak Load 60,000 MWs

• 85% of Texas; Not subject to

FERC; 3 DC Ties

• 37,000 miles of Transmission

• Firm Transmission (PTP only)

• 77,000+ MW of Generation

• Centralized registry for 5.9 million retail choice customers

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MISO RTO

• Peak load 110,000 MWs

• Market opening planned for March 1, 2005

• Full nodal real time and day-ahead energy markets

• Territory encompasses fifteen states and one Canadian province

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Ontario Market Operator

• Peak Load 25,000 MWs

• 5 minute wholesale spot market, single market clearing price

• Day-ahead and capacity markets under development

• Significant capacity shortfalls possible in 2008 with mandated shutdown of coal plants

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PJM

• Peak load 110,000 MWs

• Full nodal markets (real time and day-ahead)

• Integrating an additional 25,000 MWs of peak load area into marketplace by January 1, 2005.

• Developing a new capacity market

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New York ISO

• Peak Load 31,000 MWs

• Full nodal pricing with real time and day-ahead energy markets

• Installed capacity market with a demand curve

• Will soon implement a synchronized day-ahead and real-time system of reserve and ancillary services markets

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New England RTO

• Peak Load 25,000 MWs

• Implemented nodal pricing in 2003

• Implemented wholesale markets in 1999

• Capacity market in development with Demand Curve

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Entergy

• Peak load 22,000 MWs

• Single utility

• Bilateral markets

• 38,000 MWs of utility and merchant generation in footprint

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North American Markets

Peak Load Nodal pricing Retail Markets

Capacity market

California ISO 46,000 2007 No None

Grid West (NWPP Area) 58,000 3 yrs + No None

Alberta Electric System Operator

9,000 No Yes Future

SPP 48,000 2005 No

ERCOT 60,000 Yes No

MISO 110,000 2005 Partial No

Ontario Market Operator

25,000 No Yes Under development

PJM 110,000 1998 Yes Yes. New under

development

NYISO 31,000 2001 Yes Yes. New under

development

ISO-NE 25,000 2003 Yes Yes. New under

development

Entergy 22,000 No No No