1. What we’ve accomplished & Focus for the future
PSERC Market Stem
What we’ve accomplished
&
Focus for the future

2. The Early Years Project Categories Number Funded Efficient Markets 6.5
Tools for Analysis
Market Power
Integrating Demand Response 1

3. Evolution of Concerns Focus Areas Number Funded
Operations & Reliability
Risk Management
Adequacy – Invest. & Planning (+3.5)
Flexible Mkt. Design to accom.
changing - -
-Govt. Regs. (Rel. & Environ.) (+1)
-Technology

4. Strategic Initiatives: Executive Forums
1. ISO/RTO Needs (ISO Executives, only)
2.Transmission Investment (All Sectors)
- Cost Allocation & Recovery
3.Integrating Planning and Markets to Spur Investment (All Sectors)
- Misaligned Risk, Reward & Decide
- Incremental vs. Strategic Leap
- Transformative Technologies (Wind, Plug-
in Hybrid, Solar, Storage)
+ Participants Concerns: “Negawatts” & Inter-
regional Coordination

5. Strategic Observations and Opportunities
Tools not available to plan an optimal system
So - - do best planning under uncertainty (real options stresses flexibility)
Make Grid much “smarter” - - input from all! (Architecture?)
A Real Strategic Initiative: View grid as facilitating pathway to a SUSTAINABLE SOCIETY! (Energy Diversity, Water, The Environment)