Local market power mitigation enhancements

In a September 21, 2006 order, the Federal Energy Regulatory Commission required that by April 1, 2012 the ISO begin using bid-in demand rather than forecast demand in the market power mitigation calculations used to mitigate bids in the integrated forward market. This initiative will address this requirement as well as explore the potential impacts that incorporating convergence bids and demand response in the market would have on how bids are mitigated. The impacts of these two market features were discussed but not assessed during the convergence bidding design initiative.