Texas Residential Energy Market Monitoring

Energy Market MonitoringMonitor current market trends and updates. Access to market insight and real time market movement and information.

Residential monitoring collects available data, designs market metrics based on the available data and proposes the collection and creation of new data items as necessary. Monitoring develops and employs metrics and analytic tools applicable to market structure, participant behavior and market performance.

Monitoring analyzes measures of market structure, participant conduct and market performance, including market size, concentration, residual supply index, price-cost markup, net revenue and price. Where established metrics and thresholds do not exist or do not apply, Monitoring has the expertise to develop new metrics based in the actual operations of markets. For example, Monitoring developed and led the effort to implement the three pivotal supplier test as a structural test for market power in . This test incorporates detailed real-time information on market structure, the demand for constraint relief and the availability of generating units to respond in order to measure the structural competitiveness of power markets.

Monitoring analyzes the impact of operation of the market on market results. For example, Monitoring Monitoring monitors implementation and application of the three pivotal supplier test in energy market and in capacity market (RPM), reviews implementation of interface pricing, reviews operation of the RPM auction and validates the RPM auction results and reviews operation of ancillary services markets. We have published the results of our reviews of impact on markets and communicate regularly with and members on these issues.

Monitoring, in its role as the Independent Market Monitor for , has monitored and reported on administration of its Financial Transmission Rights (FTR) auction and its Monthly Balance of Planning Period FTR auction since their inception.

Residential monitoring has also monitored administration of the secondary bilateral market to allow participants to buy and sell existing FTRs. In this role, Monitoring has examined the auctions and markets for FTRs in terms of their structure, the behavior of the participants and the performance of the auctions and markets.

Monitoring examines supply and demand fundamentals, credit issues, patterns and concentration of ownership, trade volumes, prices, revenue, revenue adequacy, participant bids, market structure test results, the application of offer bid caps and other relevant metrics. The results of these monitoring efforts can be seen in Monitoring Monitoring’ State of the Market reports.