Friday, March 28, 2008

Upper Limit of Transmission Constraint Shadow Cost

http://www.nyiso.com/public/webdocs/documents/newsletters/connection/Connection_winter08_03272008.pdf see page 5

"Instituting an upper limit ($4,000 per megawatt-hour) in
transmission constraint shadow costs to avoid operationally
ineffective dispatch."


I believe that NYRI is making it's economic case in part because NYISO congestion costs are set very, very high. $4,000 per megawatt hour (=$4.00 per kilowatt-hr). My own electric bill averages only $0.14 per kw-hour.

I think that the maximum congestion pricing should be set at $0.40 per kw-hr ($400 per megawatt-hr) since that is the upper price that solar photovoltaic systems cost.

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