Overheard at the GCPA 2017 Spring Conference

Overheard at the GCPA 2017 Spring Conference

Apr 26, 2017

by Margarita Fournier; Copyright 2016 by Competitive Assets, LLC.  All rights reserved

On 4/24/17, RTO Insider reported on the 2017 Spring Conference of the Gulf Coast Power Association (GCPA), held in Houston last week. In his keynote address, NRG CEO Mauricio Gutierrez stated that “he was concerned about price formation in the ERCOT market, the growth of renewables, and what he called the preference for transmission over market solutions in the planning process. ‘There’s a lack of balance in transmission planning policy, which undermines wholesale prices and which will eventually overwhelm the competitive retail market and consumers,’ he said.” His solutions included improving the operating reserve demand curve’s price signal with a locational component; including marginal losses in ERCOT prices; minimizing the use of out-of-market actions; addressing mitigation rules for reliability-must-run units; and balancing transmission investment with market-based solutions. The article also mentions discussions on how to deal with environmental regulations, changing generation mix, and customer expectations

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