Ontario's electricity market gamed: OEB ...and others

The Ontario Energy Board today posted a letter to the head of the IESO (Ontario's electricity system operator) regarding the gaming of one aspect of the IESO's operation.

Dear Mr. Campbell: 

RE: Market Surveillance Panel Investigation Report

The Market Surveillance Panel’s (MSP) Report on an Investigation into Possible Gaming Behaviour Related to Congestion Management Settlement Credit Payments by Abitibi-Consolidated Company of Canada and Bowater Canadian Forest Products Inc. was posted today on the OEB’s website. In its Report, the MSP concludes that the two market participants, through deliberate market conduct, engaged in gaming in relation to Congestion Management Settlement Credit (CMSC) payments at a time when they were operating as dispatchable loads.

...
I would appreciate if you would advise me in writing within 30 days of: a) the steps that the IESO plans to take in response to the recommendation in the MSP’s Report and the timelines for completion of those steps; and b) whether, in the IESO’s view, any actions or market rule amendments, in addition to those reflected in the MSP’s recommendation, should be taken or initiated.

The particulars of the gaming scheme couldn't be as interesting as the head of the regulator requesting the head of the IESO inform of any possible action on gaming 6 months after the February report was produced - but I glanced through for dollar values anyway.

Bowater’s high bid prices were used to obtain CMSC payments that more than compensated Bowater for operating profit reductions by at least $10.3 million. 

... All customers in the wholesale energy market were disadvantaged by paying additional Uplift charges of $0.12/MWh as a result of Bowater’s behaviours.

...Bowater exploited market defects. In so doing, Bowater received $11.0 million in CMSC payments during the Relevant Period, and there was a corresponding disadvantage or expense to the market. Bowater’s conduct constitutes gaming.

and for Abitibi

Barking Mad and David Keith: on geoengineering

"I think you’ve stated that this is not the right approach — that cutting CO2 as much and as quickly as possible is the right approach, but it’s not happening so... "

Saw an article in Slate today on Geoengineering that reminded me of a recent one from David Keith.

I think the important thing on geoengineering is it's unlikely to happen as an international effort, and it is likely to happen - and like the Cuban missile crisis, many will be scared.

And not much will happen.

Maybe I'm crazy though - from these two articles it seems somebody must be.

Harvard’s David Keith Knows How to Dial Down the Earth’s Thermostat. Is It Time to Try? | Re/code:

I work across a lot of pieces of research, but I’d say the frontiers are trying to understand how much effectively turning down the sun, solar geoengineering, actually reduces the climate risk that people care about: Crop losses, ice sheets melting, temperature extremes, or what have you.
There’s no question it reduces the global average temperatures; even the people who hate it agree you could reduce average global temperatures. The question is: How does it do on a regional basis?
By far the single most important thing to look at on a region-by-region basis is the impact on rainfall and temperature.
And the answer is, it works a lot better than I expected. It’s really stunning.