For these reasons, the New York State Attorney General should be granted leave to intervene in the above captioned proceeding, with full rights as a party. In New York, the demand for electricity has grown faster than our ability to supply power where it is needed 1 . Building new generating plants, strengthening transmission facilities, deploying energy efficiency measures and taking other actions to restore the balance between electric demand and supply will take time. During this transition period, the wholesale price of electricity is susceptible to the exercise of market power when demand for electricity almost reaches the limit of supply, leading to power prices that are not just and reasonable. Thus, the AMP adds a necessary protection against the exercise of market power and does so in a way that is swift and certain.
Effective competition is the best guarantor of just and reasonable wholesale electricity prices.
Rather, it is a two-part test for potential market power. Only if a wholesale electricity price bid increase exceeded a level specific to a given generating facility and the increase triggered a specific amount of increase in the price of power would the AMP mitigate the bid. Moreover, the mitigation would apply to the bid, not to the eventual market price. When the AMP is triggered, the price of electricity would be set by the highest bid that does not implicate the exercise of market power. 7 Rather than being capped by the AMP, the price of power would be set by the highest competitive price.