Alberta Power Pool Reaches Agreement With CalPX and Watt-Ex

EDMONTON -- - The Power Pool of Alberta is pleased to announce that California Power Exchange (CalPX) and Alberta Watt Exchange Limited (Watt-Ex) have each reached an understanding with the Power Pool to establish areas of cooperation with respect to the development of electricity markets in Alberta and the development of an interface framework between forward and real-time markets. The Power Pool of Alberta will work with both CalPX and Watt-Ex to facilitate their respective efforts to develop forward market products in Alberta, including a Binding Day-Ahead Market (BDAM).

CalPX is a market operator in California, one of the largest power exchanges in the world serving all consumer classes. CalPX operates day-ahead, block-forward and day-of markets with approximately 80-90 percent of the electricity consumed in California purchased and sold at CalPX. Internet based electronic systems at CalPX are provided by OM Technologies.

Watt-Ex is a recently announced electricity forwards market in Alberta, arising from a joint initiative of some electricity participants and AgraLink Exchange.

AgraLink is a developer and operator of Internet-based electronic exchanges and is involved in both the agricultural commodity sector and the trading of greenhouse gas emissions reduction contracts as KEFI Exchange.

The Power Pool is also in discussions with other organizations interested in developing forward market products in Alberta.

As noted in our June 28 letter, Pool Participants and other stakeholders have expressed widespread support for the need for forward market developments to provide risk management opportunities and choice in buying and selling electricity. A BDAM was agreed to be a cornerstone of forward market developments.

With the expressions of interest by these operators in developing a BDAM, the need for the Power Pool of Alberta to build and operate this market is now a contingency position. The Power Pool will be working closely with market operators to finalize forward market developments including ensuring that these forward positions interface with the existing spot market.

The Power Pool remains confident that the timeline for delivery of a Binding Day-Ahead Market can be met by January 2001. We look forward to working with CalPX, Watt-Ex and others in the development of forward markets and links to the real-time electricity market.

Source: Alberta Power Pool