Wisconsin Administrative Code › Public Service Commission › Chapter PSC 100 - Affiliations between public utilities and other persons › Subchapter II - Affiliated Wholesale Merchant Plant Market Power › Section PSC 100.15 - Market power screen analysis

Current through June 24, 2024
(1) Except as
				provided for in sub. (2), an applicant shall submit a market power screen
				analysis, which shall provide, at minimum, all of the following information:
(a)
Relevant products.
Using
				the principles of analysis outlined in the DOJ guidelines; the information
				shall identify and define all relevant electricity products sold by the
				applicant and its affiliates. Those relevant products which are good
				substitutes from the buyer's perspective shall be grouped together. An initial
				grouping of wholesale products may consist of non-firm energy, short-term
				capacity, and long-term capacity with a contractual commitment of more than one
				year. However, other capacity and energy groupings reflecting developments in
				an evolving wholesale market are acceptable as long as the groupings are
				reasonable or simply mirror the state of art in product packaging. The
				information provided shall identify the relevant products by relevant hourly,
				daily, monthly, and seasonal time periods. If there are substantial variations
				in demand and supply of capacity or energy between time periods, then load
				supply and demand conditions shall be analyzed separately.
(b)
Relevant geographic
				markets.
Using the principles of analysis outlined in the DOJ
				guidelines, the information shall identify the relevant geographic markets
				which shall include each power sales customer or set of customers plausibly
				affected by the proposed construction. Affected customers are those entities
				directly interconnected to the applicant or any of its affiliates, as well as
				those entities that have purchased relevant electricity products from the
				applicant or any of its affiliates during the 2 years prior to the date of
				filing. Identification of relevant geographic markets shall factor in
				appropriate transmission capabilities and constraints. In addition, the
				relevant geographic markets shall include any markets formally identified by
				the commission or the federal energy regulatory commission.
(c)
Potential suppliers.
A
				supplier may be included in a geographic market only to the extent that it can
				economically and physically deliver relevant electricity products to the
				relevant geographic market, taking into consideration appropriate transmission
				capabilities, fees, rights, reservations, tariffs, and constraints. The
				information shall include, for the relevant geographic market, the amount of
				relevant electricity product a potential supplier could deliver to the relevant
				geographic market from owned or controlled capacity at a price, including all
				costs associated with making physical delivery over the electrical transmission
				system as well as ancillary services costs, that is no more than 5% above the
				pre-transaction market clearing price in the relevant geographic market. The
				information shall measure each potential supplier's presence in the relevant
				geographic market in terms of generating capacity, using economic capacity,
				available economic capacity, and total capacity measures. In addition, the
				information shall measure, where possible, each potential supplier's presence
				in the relevant geographic market in terms of electrical energy sold or
				expected to be sold.
(d)
Market concentration.
The information shall include all of the
				following for each relevant electricity product in the relevant geographic
				market, based on the generating capacity determined in par. (c):
1. The market share, both pre- and
				post-construction, for each potential supplier.
2. The HHI statistic for the
				market.
3. The change in the HHI
				statistic.
(e)
Forward looking analysis.
The market power screen analysis
				shall generally be forward looking and reflect all known, important
				developments with respect to electric industry restructuring, and electric
				generation and transmission construction or operation. The market power screen
				analysis shall examine the first 5 years of commercial in-service for the
				proposed electric generating facility and address whether applicant's proposed
				ownership, control or operation of a wholesale merchant plant will have a
				substantial anti-competitive effect on relevant electricity markets that are
				reasonably anticipated to exist for any class of customers, including those
				with market-based rates under s.
				196.192,
				Stats. Any such forward-looking analysis shall not preclude the commission from
				mitigating retail market power or otherwise addressing retail market power in
				the future in connection with the introduction of competition in the retail
				market.
(f)
Historical
				data.
The information shall include historical trade data and
				historical transmission data for the applicant and all of its affiliates for
				the two-year period preceding the filing of the application.
(g)
Regulatory filings.
The
				information shall include all material filed with the federal energy regulatory
				commission related to any issue of market power associated with an applicant's
				proposal to own, operate, or control a wholesale merchant plant.
(h)
Supplemental data or
				analysis.
The information may include any additional data or analysis,
				as long as the additional information accords with the principles of market
				power analysis, identification, and interpretation contained in the DOJ
				guidelines.
(i)
Source of
				data.
In constructing the market power screen analysis, the applicant
				shall use the sources of data as outlined in Appendix B of FERC Order
				592.