December 20, 2024
Bowring: Reject Revised Supply Curves
The Market Monitor said members should reject proposals to change the way capacity supply curves are represented, saying they would expose confidential data.

The Markets and Reliability Committee last week got a first read of two packages designed to better represent the supply curves posted following RPM auctions without revealing sensitive data. (See MIC Seeks Better Way to Draw Capacity Supply Curve.) Market Monitor Joe Bowring didn’t like what he saw.   Current vs. Proposed Supply Curve Smoothing (Source: PJM Interconnection, LLC)The packages, which were created by a working group of the Market Implementation Committee, both include supply curve smoothing that use the same seven-segment moving average approach and detailed methodology. Package A, however, includes detailed criteria to disallow publishing a curve for a locational deliverability area if certain tests for market concentration are failed, while Package B will only publish supply curves for the diverse RTO and MAAC transmission zones. Marji Philips of Direct Energy said she was glad to see more accurate and transparent supply curves so those serving load could “have the inside scoop” on market pricing. Bowring replied: “The goal is for no one to have the inside scoop.” He said if either of the packages was implemented, it could potentially reveal sensitive data about price-quantity offers and cause collusion among generators. He urged stakeholders to reject both packages and maintain the status quo when the issue is brought to a vote of the MIC this week.

Capacity MarketPJM Market Implementation Committee (MIC)PJM Markets and Reliability Committee (MRC)

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