California Power Exchange Sets July 30 Start for Hour-Ahead Market.ALHAMBRA, Calif.--(BUSINESS WIRE)--July 16, 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) has notified the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ) that it will begin its Hour-Ahead electricity market on July 30. George Sladoje, PX chief executive officer, told the PX Board of Governors Thursday that the decision to begin Hour-Ahead market operations follows a successful two-day market certification test period, additional participant training and installation of software enhancements. The notification, by letter on July 15, also satisfies the FERC requirement for 15 days notice prior to the intended start-up Start-up The earliest stage of a new business venture. date. "We are now confident that the new Hour-Ahead market will operate smoothly and offer participants an additional auction process to purchase or sell energy closer to the hour of electricity delivery," Sladoje said. Although the PX has been staffed on a 24-hour basis since the opening of the Day-Ahead market on March 31, the Hour-Ahead market now will require continual and overlapping auction processes for every hour throughout the year. The PX plans to begin Hour-Ahead energy delivery at noon on July 30 through an auction process similar to the current Day-Ahead market, except it will be operated on a compressed, three-hour schedule. For every hour of the day, bids for both energy sales and purchase will be received until up to three hours prior to the hour of electricity delivery. Since the auction and scheduling of delivery process will overlap with other auction hours, the PX staff will be handling three Hour-Ahead auction processes at once in addition to the current Day-Ahead auction conducted each morning at 7 a.m. Although the new Hour-Ahead market will offer additional flexibility for energy 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. , Sladoje said he expects the current Day-Ahead market to remain the largest in trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. . "We anticipate that the Hour-Ahead market will increase the overall confidence in PX trading by offering our participants an additional opportunity, between the current Day-Ahead and the real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. markets, to refine their market positions just three hours before electricity delivery," he said.
CONTACT: California Power Exchange
Ed Freudenburg, 626/537-3155
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