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Consultation on Congestion Management Settlement Credits (CMSC)

In the IMO-Administered Electricity Market - Issues Related to Constrained-off Payments to Generators and Imports

Initial Announcement and Supporting Material
On February 21, 2003 the Market Surveillance Panel (MSP) initiated a consultation regarding Congestion Management Settlement Credits (CMSC). To assist in this process, the MSP has provided a discussion paper presenting their concerns and soliciting responses on some key issues.
Stakeholder Feedback and MSP Assessment
The MSP invites interested parties to respond in writing to these issues by March 31, 2003. The intent is to post all responses on the IMO web site for interested parties to review. The MSP will consider the issues further and may seek information or clarification on some comments through the month of April. Links to the submissions received to date are listed below. (Each responding party below has approved publication of its submission, even though some submissions exhibit a "confidential" label.)
If you wish to comment on these issues, please send an email to Market Assessment and Compliance Division (MACD) and make reference to "Market Surveillance Panel Consultation" in the subject heading.

Additional Stakeholder Contact and Supporting Material
On February 18, 2003 Market Assessment and Compliance Division (MACD) provided, on behalf of the MSP, a brief statement to the Market Advisory Council (MAC), previewing the MSP consultation and Discussion Paper. There is a plan to discuss some of the key issues at the meeting of the Market Operations Standing Committee (MOSC) on March 5, 2003. CMSC payments and the related issues are among the more complicated aspects of the IMO marketplace. The MSP recommends referring to some of the background material prepared by Marketplace Training on this subject.

Results
At the July 3, 2003 meeting of the IMO Board, the Market Surveillance Panel presented its report entitled: "Constrained Off Payments and Other Issues in the Management of Congestion". The Board discussed the report, endorsed the recommendations and asked IMO Management to take action to implement them in on-going consultation with the Board. With respect to the elimination of constrained off payments, the Board agreed to address this issue if the Panel brings it forward at a later date.
 
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