Toward Reducing Seams
ISO New England and its neighbors, the New York ISO, PJM, the Independent Electricity Market Operator in Ontario, Hydro-Quebec and New Brunswick Power, recognize the restraint that seams put on trading and have been working together over the past several years to lessen the differences that inhibit the free flow of energy between the regions.
These efforts include a Memorandum of Understanding among several of the ISOs through which major inter-regional seams issues have been identified and prioritized. These stakeholder processes also established best practices, which have laid the groundwork for issue resolution. The Northeastern Independent Market Operators Coordinating Committee was also formed in 2002 to work toward solutions for harmonization of the electricity markets, including coordination of market design, business practices, system planning protocols and other activities.
Results of these efforts have already made the markets of ISO New England and its neighbors more similar, including the enhancement of ICAP rules, the sharing of regulation services, and the expanded sharing of reserves during short-term generation and transmission line interruptions. On the operational side, each of the regions has worked to update their procedures for internal and external transactions, or energy trading across borders, so that the areas have more consistent and similar methods for conducting transactions.
ISO New England continues to make significant progress in reducing trading barriers to increase reliability and enhance competition. Future efforts, such as the ISO's ongoing work with the FERC as well as upcoming plans to develop a coordinated system planning process with New York, ensure that New England and its neighbors will continue to derive benefits from the reduction of seams. ISO New England reports quarterly to the FERC on the progress of seams resolution efforts.
