Four power marketing and trading companies have won an auction of 300 MW of electricity transmission transfer capability from the PJM Interconnection to the NYISO grid serving the New York metropolitan area. According to Stamford, Conn.-based GE Energy Financial Services, the project developer, while regulators set tariff rates on other transmission projects or developers negotiate those rates with a utility, the auction format for this project represents a first for the U.S. Rates for transmission scheduling rights on the project were set in an open auction among market participants competing for economic power sources.
A three-month-long open season process – including an open and transparent marketing program – culminated in the successful auction for transmission rights to winning bidders Cargill Power & Gas Markets, Conectiv Energy Supply Inc., Consolidated Edison Energy Inc. and a fourth anonymous company. None of the winning bidders is affiliated with GE, and financial details were not disclosed. GE will design, construct and operate three 100 MW variable frequency transformers, with commercial operation anticipated during the fourth quarter of 2009.