Notice Re: Quick Hits Review: Dispatch Down Service

July 10, 2008

NOTICE TO: MARKET PARTICIPANTS

Re: ‘Quick Hits’ Review: Dispatch Down Service

On December 3, 2007 the AESO implemented the ‘Quick Hits’ rules package.  This package represented perhaps the most significant change in ISO rules since market opening.  The ‘Quick Hits’ were comprised of four main areas:

• Merit Order Stabilizers
• Payments to Suppliers on the Margin
• Treatment of Imports/Exports
• Reconstitution of Pool price for Transmission Must Run (TMR) Energy

The MSA closely monitors the market to ensure that it operates in a fair, efficient and openly competitive manner.  With the advent of new rules the MSA is keenly interested in whether the rules have had any unanticipated consequences.  In addition to our regular Quarterly Reports the MSA is undertaking some more detailed analysis with respect to particular rule changes.  In this report "Quick Hits" Review: Dispatch Down Service we present a summary of our findings relating to the reconstitution of Pool price for TMR energy using the Dispatch Down Service (DDS).  In this summary we have presented an aggregated analysis to respect participant confidentiality but in some areas we have relied upon a more detailed participant or unit level analysis in reaching our conclusions.

No specific response to this report is expected of market participants.  As ever, the MSA is open to feedback on its analysis and views.  Regarding this report, enquiries should be directed to the undersigned (              403-705-8503         403-705-8503) or to Dr. Matt Ayres (              403-705-3182         403-705-3182).

Yours truly,

“Original signed”

Mike Nozdryn-Plotnicki
Manager,  Market Monitoring
Market Surveillance Administrator

Created: 7/10/2008