The origin of Power Market Analysis (PMA) was for power trading.\u00a0 However given my experience in all facets at one of the largest utility in N. America \u2013 American Electric Power \u2013 I knew the use of the knowledge of the power markets extended beyond enriching power traders.\u00a0 With the growth of deregulation and development of regional transmission organization (RTO), the power market has evolved as a legitimate option for power generation versus self-generation for utilities, municipals, Co-op, energy providers, and large consumers.<\/p>\n
The power market is fascinating to me as compared to the stock market or other commodity markets as it offers a market that is pure.\u00a0\u00a0 The power market has limited storage opportunities producing a fundamental convergence immediately not many months from now.\u00a0\u00a0 The ability to manipulate the markets has situated from the rules of the market not the market itself.<\/p>\n
Many utilities have only touch the surface of the power markets as they still largely depend on their own generation.\u00a0\u00a0 This is changing as many baseload plants will be retiring over the next several years.\u00a0 In addition, dependence on renewable generation will lead to greater market reliance as intermittent issues are real.\u00a0 I have put together this case study to demonstrate and calculate a real dollar impact to the ratepayer if one can better account for the risk in the future market power prices.\u00a0\u00a0 PMA cannot forecast the future in terms of weather, commodity prices, outages, etc\u2026 but it can let you know how much each of those variables can impact the market.\u00a0\u00a0\u00a0 This knowledge allows an informed decision on evaluating the option of using the future power market as part of your generation mix.\u00a0 \u00a0In addition, this analysis gives you a firm and reasonable support for your decision making removing the stress from Monday morning quarterbacks. \u00a0Many people understand there is much uncertainty in future events; however one should not leave decisions to chance or just assume futures markets represent reality \u2013 we can do better than a flip of a coin.<\/p>\n
Please enjoy the case study and I look forward to your comments.\u00a0 CLICK HERE TO DOWNLOAD CASE STUDY \u2013 Case Study on Using Analytics to Save Money for Ratepayers \u2013 Beyond a Flip of a Coin<\/a><\/p>\n Your Energy Analyst Looking to Help You Succeed,<\/p>\n David<\/p>\n David K. Bellman
\nFounder\/Principal
\nAll Energy Consulting LLC- “Adding insights to the energy markets for your success.\u201d
\n614-356-0484
\ndkb@allenergyconsulting.com
\n<\/a>@AECDKB<\/p>\n