The New York Independent System Operator’s Market-Clearing Price Auction Is Too Expensive for New York

Three alternative auction rules would reduce the price of electricity across New York.

1. Require the NYISO to make the identities of bidders, bids, and the calcula-tions needed to calculate prices immediately available to the public, decision-makers, elected officials, scholars and the media.

2. Adopt the American Public Power Association’s recommendation limiting bids for short-term power sales to true marginal costs.

3. Move consumer supplies back again to fully allocated, cost-of-service electric generating plants. This would produce savings of $2.273 billion or a nearly 10% reduction in the electric bill for each New York residential household.