On September 17, 2015, the Commission issued a Notice of
Proposed Rulemaking ("NOPR") to address two existing
practices that FERC believes result in distorted price
signals. The NOPR proposes to address this problem by: (1)
requiring that each organized market align settlement and dispatch
intervals by settling real-time energy and operating reserves
transactions financially at the same time interval that it
dispatches energy and prices operating reserves; and (2) requiring
that each organized market trigger shortage pricing for any
dispatch interval during which a shortage of energy or operating
reserves occurs.
The NOPR is comprised of two proposals. First, in order to
remedy any potentially unjust and unreasonable rates caused by the
use of hourly integrated prices for real-time settlement, the
Commission proposes to require that each RTO/ISO settle energy
transactions in its real-time markets at the same time interval it
dispatches energy, and settle operating
