PJM NE RTO Study ,
 I wasn't sure if this was distributed. As you know the NYISO with LECG did a
pretty good critical review of the problems with the MIRANT study, most of
which I agreed with. However, I also thought that from a back of the
envelope perspective MIRANT had come up with a reasonable number using a
non-supportable methodology.

PJM has apparently revisited the issue. They have tried to estimate regional
savings from an integrated commitment and energy market. They did this for a
single year, 2001. They ran GEMAPS. The data for the system topology and
contingencies was obtained from all three ISO's. They used RDI data on
generator costs. The results are striking and a summary is attached.

While I am sure we are going to see more argument and debate about the data,
the transactions baseline etc., this is a pretty good first cut at what is
at stake. The general methodology is correct, and the data doesn't seem too
bad to me. It would make sense for the NYISO to again take a look at this so
that all of the participants can evaluate the implications if there are
indeed $600 million of potential production cost savings for NY.

Roy J. Shanker
9009 Burning Tree Road
Bethesda, MD 20817
301-365-3654
301-365-3657 FAX
301-332-0486 NEW CELL
royjshanker@worldnet.att.net


 - NERTOSAVINGS.pdf 
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