FERC inquiry to tackle price distortions

Pauline McCallion
21 May 2010

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FERC is pursuing the inquiry to remove any potential market distortions created by the difference between the current and future bid caps in the California Independent System Operator (CAISO) energy markets and the spot market price cap in the rest of WECC.

The bid cap in the CAISO market is $750 per megawatt hour (MWh) and is due to automatically increase to $1,000 per MWh on April 1, 2011, unless FERC intervenes. Spot market prices in WECC outside of the CAISO are capped at $400/MWh.

The FERC

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