Schiff Hardin has substantial experience in designing and implementing competitive electric markets in various regions of the country. We have actively participated in a number of cutting-edge electric issues that have arisen before the Federal Energy Regulatory Commission (FERC) as the energy industry has changed and pursued deregulation. These efforts benefit from our expertise regarding FERC's market power analyses and rules prohibiting market manipulation.
The firm represents a Regional Transmission Organization (RTO) in its efforts to develop and implement regional wholesale electric markets. We work closely with the RTO and technical experts to create innovative methods of applying competitive principles to the wholesale markets. These efforts have resulted in the design of a forward capacity market which resolves, in a market-based manner, the problem of procuring adequate generation capacity to reliably serve the region's electric customers. The forward capacity market was developed through intensive negotiations with stakeholders throughout the region, and the RTO has successfully conducted capacity auctions pursuant to the forward capacity mechanism.
We assisted in the development of market rules that permit demand-side resources to participate in the forward capacity market, and enrollment in the RTO's demand resource programs increased substantially. Our lawyers have also helped to develop rules accommodating alternative and renewable energy resources in the regional markets. In addition, we assisted the RTO in developing its competitive ancillary services markets. Internal and independent market monitors have concluded that wholesale markets in the RTO region have performed competitively.
ISO Market Development
We represent electric utilities and other clients throughout the country, including a region where we have been involved, on behalf of our clients, in efforts to develop an Independent System Operator's (ISO) existing "Day 2" electricity markets. The firm also represents these clients with respect to the ISO's ongoing plans to implement "Day 3" ancillary services markets. In addition, we were involved in the development of independent transmission companies within the ISO region. Schiff Hardin has also represented transmission owners in developing new business models to organize for-profit independent transmission companies. We have also assisted transmission owners in forming and joining RTOs, and have represented clients in matters involving transmission rate design.