I find it interesting that WESM has not published (as far as I can find) a Market Assessment Report since this one for the 26 June – 16 July 2006 period.
This was a very revealing report, particularly with respect to level of competition, or lack thereof, in the spot market.
I wonder if the next reports got quashed. Or, and I can certainly believe this with all the startup work that is going on, is the staff just behind schedule.
I’m not a market power expert – not by a long shot. I’m just looking at some of these numbers for the first time.
But looking at the RSI Index (which seems to me to show very poor competition) and the Pivotal Supplier Frequency Indices, it seems to me that should Kepco prevail in acquiring the Mirant assets, they and First Gen will be the two giants controlling prices – not PSALM with all of it’s assets put together. The PSALM assets are typically price takers – not price setters. [Update: I now think this is not right - I've posted a correction discussion here]
But seriously – I’m not an expert in this facet of the market. [Update: See. I warned you.]