Wind projects in New England receive such enormous payments for their generation, they will offer their output to the grid even when prices go negative. Clearly, when low or negative pricing occurs, the best course for the electric power providers is to reduce the production of energy. That's common sense, unless the power producer can be paid handsomely for products attached to their output, " the enhancers ."
Rhode Island ratepayers should thank the Maine DEP and Gary Campbell for denying this project .
"On July 1, 2013, ISO-NE filed changes to the Transmission, Markets and Services Tariff with
the Federal Energy Regulatory Commission. These changes include a revision to the ISO-NE
market rules that would reduce the minimum offer price in the spot wholesale energy market
from $0/MWH to negative $150/MWH. Allowing negative offer prices could increase the
likelihood of negative Locational Marginal Prices (“LMPs”).
This changes ratepayer exposure to above market costs in those hours per year when LMPs are
very low, as it increases the amount by which the Champlain Wind PPA could be above market
in a given hour. Consider an example in an hour when the LMP is zero as the result of a zero
offer price. The amount by which the purchase in that hour is above market is the contract price
minus the LMP. Prior to the change, the maximum above market exposure in such an hour
would be the $78 per MWH PPA price less the $0 per MWH LMP, or $78/MWH. Now assume
that a negative $150 per MWH offer price is allowed and it results in an LMP of negative $150
per MWH. In this example, the amount by which the purchase in this hour is above market
becomes the $78 per MWH PPA price minus a negative $150 per MWH or $228/MWH.
NGRID proposed a solution that would have put the risk of negative pricing on Champlain
Wind. However, because the RFP was issued prior to the proposed change in the market rules,
Champlain Wind’s bid price did not include accepting this risk. Champlain Wind countered with
a higher contract price to take on this risk. NGRID decided not to change the contract and to
In response to Division’s Data Request 1-2, the Company states that there were 62 hours during
the period July 1, 2012 to June 30, 2013 in which real time pricing in ISO-NE Maine Zone
dropped to zero. If the price went to negative $150 in each of these hours the ratepayer impact of
the rule change would be approximately $170,000.
In its recent RFP for renewable resources in Massachusetts, NGRID and the other electric
utilities placed the risk of negative pricing on the power sellers. Ms. Abrams states that the
Company intends to revisit this issue in the next renewable RFP in Rhode Island with the benefit
of the Company’s experience in Massachusetts.
Given the timing of the rule change, the importance of maintaining the integrity of the RFP
process, and the relatively small degree of risk to ratepayers, we believe it is acceptable for the
Champlain Wind PPA to place this risk on ratepayers. In future RFPs, NGRID should, and has
agreed to, require power sellers to take on this risk."
The problem...does the general public have trust that the gov. would never let this scam happen? It is just confusing enough to turn the average persons' attention to something else, which is what the intent is of the wind cabal.
The wind power producers and the government have cooked up a perfect Ponzi scheme that the rest of us are forced to finance. At the outrageous price of $145 per megawatt/hour, it is only a matter of time when this becomes clear to the public. I look forward to the day that the fraud subpoenas are handed out to these criminal conspirators.
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