Panelists at GCPA's annual Spring Conference discussed the challenges of revising RTO market design to accommodate many different state energy policies.

A summary of the issues scheduled to be brought to a vote at the PJM Markets and Reliability and Members committees on April 25, 2019.

NYISO proposed using an estimated fuel cost to help determine the carbon component of locational-based marginal prices, while the state’s largest waste energy producer called for carbon offsets to be included in the final carbon pricing plan.

Stakeholders expressed some skepticism as the Analysis Group revealed the outline of a new study to provide insights into pricing carbon in NYISO’s markets.

PJM stakeholders appear ready and willing to explore carbon pricing in the RTO — a prospect that concerns utilities in coal-heavy states.

NYISO said it has commissioned Analysis Group to model the social cost of carbon in order to finalize a carbon pricing scheme for its electricity markets.

NYISO stakeholders debated that carbon pricing could occasionally leave New York electricity consumers paying into the carbon revenue account.

NYISO stakeholders learned that pricing carbon into the wholesale energy market would have little effect on corporate credit rules.

NYISO told stakeholders how pricing carbon would impact the ISO’s Tariff, and how it will handle residual allocations stemming from carbon charges.

The working group charged with shepherding carbon pricing into New York’s wholesale electricity market discussed how to handle import/export transactions.