February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PSERC
Price
Reversals in California Under Rational
Buyer Procurement
nPrice reversals have been reported in the CAISO
ancillary service
market under the rational buyer auction
nOn March 20, 2000 in HE 19, there was a spike in the Replacement Reserve price. The following are
published prices
for NP15:
Reg-Up: P1 = 18.44 $/MW
Spin: P2 = 35.97 $/MW
Non-Spin: P3 = 18.00 $/MW
Replacement: P4 = 198.98 $/MW
Note that P4 > P3, P2,P1. Also P2 > P1.
Spin: P2 = 35.97 $/MW
Non-Spin: P3 = 18.00 $/MW
Replacement: P4 = 198.98 $/MW
Note that P4 > P3, P2,P1. Also P2 > P1.
nA similar pattern in AS prices was observed on Feb
29,2000 in HE18 when
replacement reserve prices were 122$/MW