Designing Effective Power Markets for the 21st Century: Pacific Northwest Region

Overview

PNNL developed and led a unique and vibrant summer study, Designing Effective Power Markets for the 21st Century: Pacific Northwest Region in Portland, Oregon on August 9-11, 2004. This exciting first-of-its-kind workshop focused on critical issues for the future of the Pacific Northwest, providing engaging discussions and illuminating how to make market concepts work for the benefit of the region.

A Powerhouse of Participants in a Convivial Setting

This session convened targeted invitees from three key stakeholder groups—academia, research/technology, and planning/power—and provided an energetic forum to debate and exchange ideas with stimulating regional peers and prominent national experts. Dr. Vernon Smith, 2002 Nobel Prize-winner in Economic Sciences and one of the earliest proponents of utility deregulation and power markets, provided the keynote address. Participants included a variety of experts, from scientists and engineers (PNNL, U.S. DOE, SAIC, and Portland State University), to regional utility commission representatives (Oregon Public Utility Commission and Washington Utilities and Transportation Commission), to power planners (BPA, Portland General Electric, Puget Sound Energy, Northwest Power Planning Council, Energy Northwest, and GridWest RTO), to national experts in power markets (from Cornell, George Mason, and Northwestern universities). The three day session departed from a traditional mold of back-to-back presentations, thrusting participants into experiential learning situations and interactive, collaborative exercises.

Interactive Market Experiment, Developing Key Insights

In addition to a wealth of sessions led by keynote speakers and prominent academicians, participants had the opportunity to 'experience' market structures using the interactive PowerWeb experiment developed by the Consortium for Electric Reliability Technology Solutions (CERTS) in collaboration with the Power Systems Engineering Research Center (PSERC) and Cornell University. Playing the role of realistic power market sellers and witnessing how behavior and market design may result in a variety of strategies and outcomes provided a compelling, first-hand experience of power market concepts, acting as a springboard for ideas and discussion.

Market-related characteristics, benefits and constraints were considered from a number of angles, revealing the significance concepts, including status quo bias, existing power market mechanisms in the Pacific Northwest, the potential for establishing demand markets as a benign first step for the region, barriers to revealing price signals, experiential market economics as a compelling tool, and much more.

Working toward a Regional and National Vision

This enriching Summer Study was developed in the context of planning for a GridWise future in the Pacific Northwest—envisioning an information-centric environment where physical power systems meet market systems and harness the strengths of this region. It was presented by PNNL in association with regional and national sponsors, including the GridWise Alliance, Bonneville Power Association, and the Portland State University Department of Economics. The session was chaired by Carl Imhoff and facilitated by Mia Bosquet, both of PNNL.

Location

University Place
Portland, Oregon