California Power Exchange Opens Hour-Ahead Market.ALHAMBRA, Calif.--(BUSINESS WIRE)--July 30, 1998--The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Power Exchange (PX) Thursday launched its new Hour-Ahead electricity market to give buyers and sellers in the state's deregulated electricity marketplace greater flexibility in trading nearer the energy delivery hour. Since this market will involve trading through 24 daily auctions, the PX staff has been preparing for around-the-clock trading with 27 participants certified See certification. to bid in the Hour-Ahead market, said PX Chief Executive Officer George Sladoje. "The Hour-Ahead market joins the PX's successful Day-Ahead market as a major new service to further facilitate California's deregulated energy marketplace," Sladoje said. "I am very proud of the PX staff who have worked to condense con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. the Day-Ahead market's six-hour auction and scheduling process into three hours. Since each auction hour will overlap two other auction periods, the PX trading room The notion of "trading room" (sometimes used as a synonym of "trading floor", see below) is widely used in financial markets to refer to the office space where market activities are concentrated in investment banks or brokerage houses. now will be processing three auction hours simultaneously along with the existing Day-Ahead auction process each morning." Despite this increased level of trading, Sladoje said he was confident that Hour-Ahead trading can be conducted in an efficient manner. However, the short Hour-Ahead processing schedule does not leave time to correct bidding or scheduling problems. When those are encountered, that hour's auction process will be canceled and defaulted to the existing Day-Ahead schedule. "The Hour-Ahead market will allow all PX traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. greater flexibility in adjusting their hourly market positions, based upon changes in electric generation availability and fluctuations in consumer demand," Sladoje said. "This will be especially useful to distribution utilities and electric service providers who may need to modify their Day-Ahead market positions when consumer demand changes due to weather conditions." For today's market opening, Hour-Ahead bids for the 4 p.m. to 5 p.m. delivery hour will be accepted until 1 p.m., when the first Hour-Ahead electronic auction is conducted. Over the next three hours, the PX market process involves receiving energy, ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. services, adjustment and supplemental energy bids; scheduling transmission with the state's Independent System Operator; and balancing, finalizing and communicating Hour-Ahead schedules. Within a few weeks, the Hour-Ahead prices will be posted on the PX World Wide Web Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the site, at www.calpx.com, hourly through an automatic posting process. Until development of the automatic system is complete, however, the prices will be manually posted by no later than noon on the day following the trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. .
CONTACT: California Power Exchange, Alhambra
Ed Freudenburg, 626/537-3155
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