ECCO International (ECCO) has served in key advisory roles in the formation of new energy markets since the inception of deregulation and restructuring or privatization of the electric power industry both in the US and abroad. We are committed to helping our clients understand market complexities and how to develop a successful position no matter what your role in the market.

Whether your market has yet to be designed or is maturing at a rapid pace, ECCO can help you to assess the impact of new or alternative market structures, understand proven approaches and those thwarted by regulators, and evaluate options for moving forward.

• Optimal Market Structures and Impact Assessment
• System Operator Structural Planning
• Independent or Integrated Power Exchanges
• Regulatory Aspects (Wholesale and Retail)
• Governance (Federal, State and Local)
• Stakeholder Participation

Transmission Business Models
Different models present alternatives for the mix of responsibilities for the transmission regulatory framework in support of new decentralized electric industry structures. Various organizational and ownership structures related to transmission leads to a different set of problems and incentives. No matter which market design is chosen for implementation, there must be a close connection between the design of options for market flexibility and the pricing principles for actual use of the transmission grid. The key ingredient deals with management of transmission congestion. Without an efficient spot market and the associated locational prices, there will be no way to define a workable system of transmission rights, and no way to stimulate investment in transmission by market participants. ECCO can assist your organization in understanding the various market design options and which approach will bring you the most value.

Regional Transmission Organization (RTO)
The Federal Energy Regulatory Commission's Standard Market Design (SMD) proposal has provided guidelines on market design principles, ownership, governance structure, regional boundaries, independence of market participants, and incentive regulation, but the success remains in the specifics that can only fashion well-designed market institutions. The rules for access to essential facilities, pricing schemes and consistent and efficient incentives that foster a more robust transmission network and enhanced operating capabilities are integral details of important market structure decisions. ECCO can help with your efforts to be consistent with FERC's market design principles and standards while achieving value for your specific organization. Our industry experts have the regional contacts and practical experience that will make it easier for you to manage interregional activities and seams issues.

Independent System Operators (ISOs)
The ISO provides a dispatch function that coordinates the spot market. The ISO does not own transmission lines yet it schedules and dispatches generators on transmission networks to provide energy, ancillary services, manages congestion, and assures network reliability.

As an integral component of California's ISO start-up operation, ECCO consultants participated in the early market structure issues including the design of market operations and use of independent power exchanges. While the California experience has been criticized by many policy makers and market designers, our team understands the details of what works, what does not, and the lessons learned from this unique experience. Our consultants have played a critical role in reassessing California's market design and continue to participate in several market redesign processes. We assist with system and market operator structural planning and how to interface with the various market participants, independent power exchanges, and regulatory and governing agencies. The following are specific areas ECCO can provide substantial value to your organization:

• Organizational Structure
• Business Processes
• Market Design and Implementation
• Detailed Design Specification
• Software Vendor Selection
• Operating Procedures
• Stakeholder Processes
• Tariff development

Transco
A Transco is a single regional entity that owns and operates the transmission system, but is independent of generation and load. The Transco model emphasizes the combined responsibility for ownership of the wires and conduct of system operations. Similar to the other business models, ECCO can assist you in evaluating the best option for your organization and develop and execute a market plan consistent with your business and corporate objectives.

Gridco
A Gridco is a regional entity that owns transmission wires and is independent of generation and load. The Gridco is not responsible for controlling use of the system, but must be paired with a system operator. Similar to the other business models, ECCO can assist you in evaluating the best option for your organization and develop and execute a market plan consistent with your business and corporate objectives.

Power Exchanges (PX)
Whether private or public, there is a role for power exchanges in the new energy marketplace. ECCO provides consulting services on all aspects of market design and deployment of the infrastructures and systems needed to conduct and clear electricity as a commodity in the forward markets.

Retail/Open Access
Customer response to newly opened competitive markets plays an integral role in the success of a new market and the pace at which any new market evolves. ECCO can help you to identify barriers and success factors that have been critical to newly opened markets. The key areas ECCO can provide value to your organization are:

• Market Segmentation
• Aggregation
• Unbundling
• Demand Response Programs
• Evaluation of Retail Customer Switching, Acquisition Costs, Profitability
• Load Profiling
• Metering, Billing, and Settlements

Energy Market Design & Analysis
While the US standard market design for electricity markets continues to advance and other world-wide designs mature, ECCO International offers customized market design services, market research and market intelligence services to clients who wish to stay ahead of the fast evolving energy marketplace. Participating with a complete spectrum of participants in energy markets regionally and worldwide, ECCO International can help you evaluate if a particular market design feature or strategy would benefit your organization.

ECCO International’s practical experience provides innovative solutions tailored to meet our clients’ diverse needs. We provide turn-key consulting from guidance on the type of assessment that would bring valuable insights for decision making, to designing wholesale electricity markets, to conducting independent studies to simulate various market elements.

Examples of subject areas of ECCO International’s expertise on market design and analysis include:

• Congestion Management
• Network Model Development
• Locational Marginal Pricing (LMP) development and implementation
• Locational Marginal Pricing (LMP) Cost Benefits Analysis
• Zonal vs. Nodal Price Delineation
• Market Separation
• Scheduling
• FTRs as Obligations vs. Options
• Forward Energy Markets
• Existing Transmission Contracts
• Reliability Must Run Unit Scheduling
• Ancillary Services Definition, Procurement, Pricing and Settlements
• Sequential vs. Simultaneous Energy/Ancillary Services Procurement
• Real Time Markets
• Security Constrained Unit Commitment (SCUC)
• Security Constrained Economic Dispatch (SCED) Risk Analysis
• Global and Local Market Power Mitigation (MPM)
• Settlements Analysis
• Metering
• Settlements Charge Gap Analysis and Reconciliation
• Operational Procedures
• Grid Code Development
• Organizational Structures (e.g., Transco vs. RTO)
• Market Analysis and Simulation