barkerde@nmenergy.com writes to the NYISO_TECH_EXCHANGE Discussion List:



Some feed back so far...... There appears to be a problem brewing with the
planned implementation of the May 29 adjustment that removes the $20K bias 
from
the DAM external transactions.I am awaiting a call back on my concerns from 
the
NYISO. By occasionally settling hourly prices through BME or occasionally
settling after SCD sets RT prices, depending on the extistence or non 
existence
of congestion, a problem that we thought we fixed many months ago will 
reappear
with the removal of the $20K bias.Here is an example of my musings....

DAM bid gets accepted at  $50 ( Import from PJM)  .....  BME  then runs (No
constraints)  evaluating the import HAM bids and other items that have
BMEprovide a $40 price.... DAM gets cut  , looks like  a $10 profit  ( 
providing
your loss in PJM doesn't exceed $10) . Due to in hour operations the RT price
clears at $60. You loooooooose!!  Sound familiar? After getting beat up like
this the MP's went through the committee structure and had the $20,000 adder
used for DAM (except IS+) to protect against this. The clearing at BME for all
external  proxy busses removed the problem so the $20,000 adder was removed. 
Now
the external interfaces only clear at BME if they are constrained. Are we 
taking
a huge step back on purpose or was there a mistake in implementation?