A large US electric utility, wanted to demonstrate to the Federal Energy Regulatory Commission (FERC) that sellers in the California electricity markets during the summer of 2000 committed California ISO tariff violations. The utility also wanted to calculate a set of competitive prices that would have been expected to occur in the California electricity markets if sellers had not committed tariff violations and compare those prices to the amounts actually received by sellers. Finally, the utility wanted to calculate refunds that would be paid by sellers to California utilities for certain types of energy transactions in order to mitigate prices charged above just and reasonable levels.
DHInfrastructure supported preparation of expert testimony on behalf of the utility. As part of this work DHInfrastructure: 1.) Constructed a database of market bid prices and production costs; 2.) Calculated economic withholdings of power marketers; 3.) Identified anomalous bidding strategies used by power marketers that constituted tariff violations; 4.) Analyzed the bidding behavior of specific sellers in order to evaluate and rebut the opposing party’s arguments; 5.) Provided on-going analytical support and reporting using the constructed models.