Notice Re: Operating Reserves Procurement-Understanding Market Outcomes

NOTICE TO: MARKET PARTICIPANTS

Re: Operating Reserves Procurement – Understanding Market Outcomes

The MSA is pleased to publish this report entitled, Operating Reserves Procurement – Understanding Market Outcomes.  The purpose of this paper is broadly educational, primarily aimed at explaining some of the dynamics of the operating reserve market and why on occasion interesting outcomes appear to be odd.  We consider how small changes in market fundamentals can have a large impact on operating reserve prices.  This paper is also aimed at addressing the relative absence of information about participant offers and market dynamics involved in the procurement of operating reserves.  A better understanding of these factors may also assist market participants in understanding the AESO’s proposed re-design of the operating reserves market.

If you have any questions or concerns please contact the undersigned at (403) 705 8503 or mike.nozdrynplotnicki@albertamsa.ca.


Yours truly,

“Original signed”

Mike Nozdryn-Plotnicki
Manager, Market Monitoring
Market Surveillance Administrator

 

Created: 9/16/2009