Lessons learned from operating genco assets in RTO markets

By early 2009, roughly 60% of the US capacity will operate in RTO markets. This panel session will discuss the key challenges facing RTO operators and market participants in the new RTO-centric world: • What are the main physical and financial impacts of the new RTO markets on our generation fleet? • Do our schedulers have the tools to accurately forecast hourly loads and prices for the day-ahead and real-time markets? • How can our traders formulate bidding strategies that maximize the expected profits from both the day-ahead and real-time markets? • How well can our trading team forecast costs, revenues, profits & losses, fuel consumption, and emissions for units that are scheduled by the ISO? • How can we make sure that the ISO day-ahead schedule meets our plant operational constraints (NOx, take-or-pay gas, etc…) • How much money are we leaving on the table if we decide to self-schedule selected units? • How does a lower availability affect revenues and profits for our portfolio? • What is the best way to formulate hedging strategies for our genco assets in LMP markets? • How should we value FTRs in LMP markets? • Do we need to have our own shadow settlement software to check ISO invoices? ▪ Why do RTOs implement co-optimization to clear energy and ancillary-service markets? ▪ Does co-optimization produce a schedule that minimizes the total production costs for the RTO? ▪ Does co-optimization produce a schedule that maximizes revenues and profits for market participants? ▪ Does co-optimization produce expected prices for ancillary services? Any problems with price reversal?