Comments - Negative Pricing in The New England Electric Pool Will Cost Ratepayers a Fortune - Citizens' Task Force on Wind Power - Maine2024-03-29T09:56:15Zhttps://www.windtaskforce.org/profiles/comment/feed?attachedTo=4401701%3ABlogPost%3A60331&xn_auth=noRhode Island ratepayers shoul…tag:www.windtaskforce.org,2015-01-01:4401701:Comment:600902015-01-01T17:19:58.909ZDan McKayhttps://www.windtaskforce.org/profile/DanMcKay
<p align="left">Rhode Island ratepayers should thank the Maine DEP and Gary Campbell for denying this project .</p>
<p align="left">"Negative Pricing"</p>
<p align="left">"On July 1, 2013, ISO-NE filed changes to the Transmission, Markets and Services Tariff with</p>
<p align="left">the Federal Energy Regulatory Commission. These changes include a revision to the ISO-NE</p>
<p align="left">market rules that would reduce the minimum offer price in the spot wholesale energy market…</p>
<p align="left">Rhode Island ratepayers should thank the Maine DEP and Gary Campbell for denying this project .</p>
<p align="left">"Negative Pricing"</p>
<p align="left">"On July 1, 2013, ISO-NE filed changes to the Transmission, Markets and Services Tariff with</p>
<p align="left">the Federal Energy Regulatory Commission. These changes include a revision to the ISO-NE</p>
<p align="left">market rules that would reduce the minimum offer price in the spot wholesale energy market</p>
<p align="left">from $0/MWH to negative $150/MWH. Allowing negative offer prices could increase the</p>
<p align="left"><font face="Times New Roman">likelihood of negative Locational Marginal Prices (</font><font face="Times New Roman">“LMP</font><font face="Times New Roman">s</font><font face="Times New Roman">”).</font></p>
<p align="left">This changes ratepayer exposure to above market costs in those hours per year when LMPs are</p>
<p align="left">very low, as it increases the amount by which the Champlain Wind PPA could be above market</p>
<p align="left">in a given hour. Consider an example in an hour when the LMP is zero as the result of a zero</p>
<p align="left">offer price. The amount by which the purchase in that hour is above market is the contract price</p>
<p>minus the LMP. Prior to the change, the maximum above market exposure in such an hour</p>
<p></p>
<p align="left">would be the $78 per MWH PPA price less the $0 per MWH LMP, or $78/MWH. Now assume</p>
<p></p>
<p align="left">that a negative $150 per MWH offer price is allowed and it results in an LMP of negative $150</p>
<p></p>
<p align="left">per MWH. In this example, the amount by which the purchase in this hour is above market</p>
<p></p>
<p align="left">becomes the $78 per MWH PPA price minus a negative $150 per MWH or $228/MWH.</p>
<p></p>
<p align="left">NGRID proposed a solution that would have put the risk of negative pricing on Champlain</p>
<p></p>
<p align="left">Wind. However, because the RFP was issued prior to the proposed change in the market rules,</p>
<p></p>
<p align="left"><font face="Times New Roman">Champlain Wind</font><font face="Times New Roman">’s bid price</font> <font face="Times New Roman">did not include accepting this risk. Champlain Wind countered with</font></p>
<p></p>
<p></p>
<p align="left">a higher contract price to take on this risk. NGRID decided not to change the contract and to</p>
<p></p>
<div>have ratepayers accept the risk associated with negative pricing.</div>
<div><p align="left"><font face="Times New Roman">In response to Division’s Data Request 1</font><font face="Times New Roman">-2, the Company states that there were 62 hours during</font></p>
<p align="left">the period July 1, 2012 to June 30, 2013 in which real time pricing in ISO-NE Maine Zone</p>
<p align="left">dropped to zero. If the price went to negative $150 in each of these hours the ratepayer impact of</p>
<p align="left">the rule change would be approximately $170,000.</p>
<p align="left">In its recent RFP for renewable resources in Massachusetts, NGRID and the other electric</p>
<p align="left">utilities placed the risk of negative pricing on the power sellers. Ms. Abrams states that the</p>
<p align="left">Company intends to revisit this issue in the next renewable RFP in Rhode Island with the benefit</p>
<br />
<p align="left"><font face="Times New Roman">of the Company’s ex</font><font face="Times New Roman">perience in Massachusetts.</font></p>
<p align="left">Given the timing of the rule change, the importance of maintaining the integrity of the RFP</p>
<p align="left">process, and the relatively small degree of risk to ratepayers, we believe it is acceptable for the</p>
<p align="left">Champlain Wind PPA to place this risk on ratepayers. In future RFPs, NGRID should, and has</p>
<p>agreed to, require power sellers to take on this risk."</p>
</div> The problem...does the genera…tag:www.windtaskforce.org,2014-12-31:4401701:Comment:603482014-12-31T01:54:43.783ZMike DiCensohttps://www.windtaskforce.org/profile/MikeDiCenso
<p>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.</p>
<p>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.</p> The wind power producers and…tag:www.windtaskforce.org,2014-12-27:4401701:Comment:601182014-12-27T18:00:05.665ZMarshall Rosenthalhttps://www.windtaskforce.org/profile/MarshallRosenthal
<p>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.</p>
<p>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.</p>