All,
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Today, the FERC  issued an order rejecting NYISO's request to lift the 
$2.52/MW bid cap on its  non-synchronized reserve market and ordered that a 
technical conference be  convened to find solutions to the problems in the 
non-synchronized reserve  market and also the energy market and its design 
flaws (as requested by  EPMI).? The Commission rejected NYISO's request 
because of its failure to  implement changes in the non-synchronized reserve 
market ordered by the  Commission and because the changes that were made do 
not significantly reduce  concentration of that market east of the central 
east constraint, but said that  it would lift the caps once the market could 
be demonstrated to be workably  competitive.
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Commissioner Hebert  disented, in favor of lifting the bid caps as well as 
the $1000 cap on the  energy market.? He continues to support modifications 
to NYISO's markets  that would allow other suppliers to participate.? Hebert 
feels that a  technical conference would be ineffectual.
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Commissioners  Breathitt and Massey supported the order.? Chairman Hoecker 
expressed a  long list of apprehensions about the markets and the process in 
New York,  likening his concerns to those expressed recently by the 
Commission regarding  California.? He?cited the staff report on its 
investigation of the  northeast bulk power markets, finding problems with the 
balkanization of the  markets and supporting the formation of a single 
Northeast regional  operation.
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The staff report can  be found at:
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http://cips.ferc.fed.us/Q\CIPS\WP\MISC\MS/MS110700.00d.wpd
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Scott