Energy Pricing in New York

Here is a simple explanation of "Energy Pricing in New York" from the Independent Power Producers of New York (IPPNY). All bidders are paid the amount of the highest selected bidder; therefore, the more efficient generators make more profit. http://www.ippny.org/files/pdfs/Energy_Pricing.pdf

IPPNY is a proponent of the market-based approach that NY uses. I'm not so sure, because NY has higher electricity prices than every other state except Hawaii and Connecticut. I've asked a lot of people why that is. Most say that it's because we don't use much coal, but I'm not convinced yet. NY has a lot of hydro/nuclear, which is relatively cheap.

The market-based approach began in 1999 with the formation of NYISO. Before that the New York Power Pool (NYPP) was the overall operator. The excerpt below makes it sound like there are benefits to the switch, but they can't seem to quantify who got these benefits, so again, I'm not convinced that the market-based approach is any better than the previous system:

http://www.nyiso.com/public/webdocs/documents/regulatory/filings/2007/03/nyiso_anlyss_grp_rprt_031307.pdf
"Given these benefits, then who has experienced them: consumers? owners of power plants? others? This question is not easy to answer, and our report has not attempted to determine in detail how these benefits have been allocated among various entities in New York and elsewhere." (see page 3)

Why the "and elsewhere". There are benefits that went outside New York State?????