Capacity Markers 2007

Against the backdrop of ever tightening environmental regulations, energy markets throughout the U.S. are being revitalized through ISO-administered capacity pricing frameworks. FERC is on board with the new math, and ratings agencies are paying close attention to the bankability of the new capacity pricing frameworks. Designed to ensure resource adequacy, the new MW pricing paradigms break the binary cycle of “iron on the ground” either being cherished during times of scarcity or otherwise sold for dimes on the dollar during periods of capacity overhang. In addition to attracting capital for new entry or gauging retirements, billions of dollars in power sales are sensitive to complex capacity pricing rules that have been tailored by market area. Distinctions by market area are many. Are you ready?

Infocast’s Capacity Markets conference offers a vital competitive resource for any entity planning investments, owning assets, and selling power in California, the Midwest and the Northeast — or even selling and buying power into and out of these regions. This event brings together, under one roof, the key ISO market designers and administrators responsible for implementation of market rules from the PJM region, New York, New England, the Midwest and California, as well as senior executives from IOU’s, IPP’s, LSE’s, transmission developers, investors and bankers, to provide the most authoritative map available:

• Recent changes in NYISO’s Demand Curve and the outlook for both PJM’s and ISO-NE’s auctions in 2007.

• How the capacity pricing mechanisms in PJM, New York and New England affect “cross-border” trade. What capacity is being de-listed in pursuit of more profitable options in neighboring markets. How environmental regulations affect the resource mix.

• The implications of demand curve mechanisms against descending clock auctions, the ongoing development of market rules, capacity eligibility, penalty adjustments, and capacity congestion effects.

• Developments in the West and Midwest: California’s experiences with its Resource Adequacy model and MISO’s perspective on the RPM.

• Extra-high voltage transmission projects proposed in each market, and how those projects may affect long term capacity values, buy/sell strategies, and market timing objectives will be reviewed.

Attendees at Capacity Markets will take home the insights, contacts and context that will help them succeed in a new era of generation and transmission build-out.