Changes to Horizontal Market Power Analysis in FERC Market-Based Rate Applications
Refinements to Horizontal Market Power Analysis for Sellers in Certain Regional Transmission Organization and Independent System Operator Markets,
Order No. 861, 168 FERC ¶ 61,040 (2019).
Effective date: September 24, 2019.
On July 18, 2019, FERC issued an order modifying the requirements for entities which hold market-based rate authority, as well as new applicants. This order will reduce the filing burden on entities seeking market-based rates in the Eastern ISOs, PJM, NYISO, ISO New England and MISO. It leaves filing requirements unchanged for entities in bilateral markets, CAISO and SPP.
Order No. 861 finds that sellers transacting in markets operated by regional transmission organization (“RTO”) and independent system operators (“ISO”) do not need to submit indicative screens regarding their horizontal market power to obtain or maintain market-based rates to sell energy, ancillary services and capacity. The Commission found that the ISO/RTOs’ market monitoring regimes are sufficiently mature to allow for appropriate monitoring and mitigation. Further,