ISO Board of Governors General SessionJuly 9, 2008
Market Performance Reportfor April 2008
Alan IsemongerManager, Market Information
2
Market Highlights
April was a quiet month
Lighter loads and fewer units on-line limited ramping capability and contributed to more frequent price spikes
3
Monthly Market Performance Metrics
Monthly Metrics Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Avg
Average Gas Price $7.19 $7.27 $6.89 $6.14 $5.93 $5.73 $6.80 $7.05 $7.00 $7.78 $8.31 $9.09 $9.96 $7.33
Average On-Peak Contract Price $64.78 $75.04 $68.47 $71.76 $71.40 $59.64 $71.89 $64.21 $70.41 $76.90 $77.52 $84.41 $97.74 $74.12
Average Real-Time Price $50.24 $59.14 $54.85 $55.84 $62.44 $47.22 $56.59 $56.95 $62.84 $70.64 $66.07 $75.88 $89.10 $63.13
No. of Price Spikes Over $250 203 101 77 79 167 10 93 72 122 192 192 171 225 125
Costs Incurred over $250 (percent) 33% 22% 18% 14% 24% 3% 27% 16% 29% 28% 26% 21% 25% 21%
AS Cost ($ per MWh) $0.38 $0.74 $0.59 $1.16 $0.78 $0.58 $0.47 $0.56 0.5 0.45 0.63 0.73 0.77 $0.66
RA Unit Commitment Costs ($M) $2.1 $1.9 $3.4 $4.8 $3.2 $2.9 $4.3 $5.0 $5.0 $7.0 $4.0 $4.0 $5.0 $4.2
FERC Unit Commitment Costs ($M) $0.1 $0.0 $1.4 $1.4 $1.4 $0.8 $3.8 $0.6 $0.1 $0.0 $0.0 $0.0 $0.0 $0.8
Inc OOS Redispatch Costs ($M) $1.7 $1.5 $1.2 $2.1 $1.2 $1.2 $4.5 $2.0 $3.1 $3.4 $3.0 $2.9 $1.8 $2.3
Dec OOS Redispatch Costs ($M) $0.3 $0.7 $0.3 $0.4 $0.5 $0.3 $2.5 $2.5 $1.2 $2.3 $2.5 $1.1 $0.6 $1.2
Total Interzonal Congestion ($M) $5.0 $12.5 $4.5 $4.2 $3.1 $4.3 $12.9 $10.3 $12.3 $6.1 $1.9 $9.0 $4.5 $7.1
4
Number of Price Spikes Up to 225 from 171
-50
0
50
100
150
200
250
300
350
400
450
500
5501-
Apr
2-Ap
r3-
Apr
4-Ap
r5-
Apr
6-Ap
r7-
Apr
8-Ap
r9-
Apr
10-A
pr11
-Apr
12-A
pr13
-Apr
14-A
pr15
-Apr
16-A
pr17
-Apr
18-A
pr19
-Apr
20-A
pr21
-Apr
22-A
pr23
-Apr
24-A
pr25
-Apr
26-A
pr27
-Apr
28-A
pr29
-Apr
30-A
pr
Date
Mar
ket-C
lear
ing
Pric
e ($
/MW
h)
NP15 Dispatch Price SP15 Dispatch Price
5
AS Cost to Load Increased Slightly
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
1-M
ar
8-M
ar
15-M
ar
22-M
ar
29-M
ar
5-Ap
r
12-A
pr
19-A
pr
26-A
pr
A/S
Cost
to L
oad
($/M
Wh)
Non-SpinSpinRegulationDownRegulationUpMonthly Average
RU RD SP NS RU RD SP NSMar 08 364 356 798 797 23.58$ 16.97$ 3.43$ 0.80$ Apr 08 382 356 824 846 20.40$ 12.56$ 8.16$ 1.18$
4.8% 0.0% 3.3% 6.2% -13.5% -26.0% 137.8% 47.3%
Average Required (MW) Weighted Average Price ($/MW)
6
Unit Commitment Costs Up $1M from $4M in March
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,0001-
Mar
8-M
ar
15-M
ar
22-M
ar
29-M
ar
5-A
pr
12-A
pr
19-A
pr
26-A
pr
System Miguel Banks SWPLSCE Area San Onofre-Santiago SCITOther-Outage Path 26 Other
Victorville-Lugo
Path 15
7
Inter-zonal Congestion Costs Down by half to $4.5M
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
1-Ap
r
4-Ap
r
7-A
pr
10-A
pr
13-A
pr
16-A
pr
19-A
pr
22-A
pr
25-A
pr
28-A
pr
PALOVRDE ELDORADO MEAD PARKER Other
Palo Verde derated on April 12 & 13
ISO Board of Governors General SessionJuly 9, 2008
Market Performance Reportfor May 2008
Alan IsemongerManager, Market Information
9
Market Highlights
The month of May saw the first heat wave of the year starting on May 15 and ending on May 19.
The heat wave during mid month combined with transmission line outages drove the majority of unit commitment costs
Availability of cheap hydro power from Pacific Northwest resulted in significant Inter-zonal Congestions costs
10
Monthly Market Performance Metrics
Monthly Metrics May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Avg
Average Gas Price $7.27 $6.89 $6.14 $5.93 $5.73 $6.80 $7.05 $7.00 $7.78 $8.31 $9.09 $9.96 $9.98 $7.53
Average On-Peak Contract Price $75.04 $68.47 $71.76 $71.40 $59.64 $71.89 $64.21 $70.41 $76.90 $77.52 $84.41 $97.74 $89.18 $75.27
Average Real-Time Price $59.14 $54.85 $55.84 $62.44 $47.22 $56.59 $56.95 $62.84 $70.64 $66.07 $75.88 $89.10 $64.21 $63.21
No. of Price Spikes Over $250 101 77 79 167 10 93 72 122 192 192 171 225 195 130
Costs Incurred over $250 (percent) 22% 18% 14% 24% 3% 27% 16% 29% 28% 26% 21% 25% 25% 21%
AS Cost ($ per MWh) $0.74 $0.59 $1.16 $0.78 $0.58 $0.47 $0.56 0.5 0.45 0.63 0.73 0.77 1.18 $0.70
RA Unit Commitment Costs ($M) $1.9 $3.4 $4.8 $3.2 $2.9 $4.3 $5.0 $5.0 $7.0 $4.0 $4.0 $5.0 $16.0 $5.1
FERC Unit Commitment Costs ($M) $0.0 $1.4 $1.4 $1.4 $0.8 $3.8 $0.6 $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.7
Inc OOS Redispatch Costs ($M) $1.5 $1.2 $2.1 $1.2 $1.2 $4.5 $2.0 $3.1 $3.4 $3.0 $2.9 $1.8 $3.5 $2.4
Dec OOS Redispatch Costs ($M) $0.7 $0.3 $0.4 $0.5 $0.3 $2.5 $2.5 $1.2 $2.3 $2.5 $1.1 $0.6 $1.7 $1.3
Total Interzonal Congestion ($M) $12.5 $4.5 $4.2 $3.1 $4.3 $12.9 $10.3 $12.3 $6.1 $1.9 $9.0 $4.5 $18.2 $8.0
11
Number of Price Spikes Down to 195 from 225
-50
0
50
100
150
200
250
300
350
400
450
500
5501-
May
2-M
ay3-
May
4-M
ay5-
May
6-M
ay7-
May
8-M
ay9-
May
10-M
ay11
-May
12-M
ay13
-May
14-M
ay15
-May
16-M
ay17
-May
18-M
ay19
-May
20-M
ay21
-May
22-M
ay23
-May
24-M
ay25
-May
26-M
ay27
-May
28-M
ay29
-May
30-M
ay31
-May
Date
Mar
ket-C
lear
ing
Pric
e ($
/MW
h)
NP15 Dispatch Price SP15 Dispatch Price
12
AS Cost to Load up to $1.12 from $0.77
0 .0 0
0 .5 0
1 .0 0
1 .5 0
2 .0 0
2 .5 0
3 .0 0
3 .5 0
4 .0 01-
Apr
8-A
pr
15-A
pr
22-A
pr
29-A
pr
6-M
ay
13-M
ay
20-M
ay
27-M
ay
A/S
Cos
t to
Load
($/M
Wh)
N o n -S p inS p inR e g u la t io n D o w nR e g u la t io n U pM o n th ly A v e ra g e
RU RD SP NS RU RD SP NSApr 08 382 356 824 846 20.40$ 12.56$ 8.16$ 1.18$
May 08 383 356 814 838 23.98$ 29.59$ 11.79$ 2.31$ 0.4% 0.1% -1.2% -0.9% 17.6% 135.5% 44.5% 95.5%
Average Required (MW) Weighted Average Price ($/MW)
13
Unit Commitment Costs Up $16 M from $5M in April
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,0001-
Apr
8-A
pr
15-A
pr
22-A
pr
29-A
pr
6-M
ay
13-M
ay
20-M
ay
27-M
ay
System Devers-Palo Verde Metcalf-Moss LandingLugo-Mira Loma Miguel Banks SCITOther Outage Other
Primarily heat wave
14
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
1-M
ay
4-M
ay
7-M
ay
10-M
ay
13-M
ay
16-M
ay
19-M
ay
22-M
ay
25-M
ay
28-M
ay
31-M
ay
NOB PACI PALOVRDE IPPDCADLN ELDORADO Other
Inter-zonal Congestion Costs up $13.7 M to $18.2M