Biography
Abstract
Brian Stott works in the field of computer applications for the secure market operation of electric power systems. In 1984 he co-founded the Arizona company Power
Computer Applications, which became a major supplier of network analysis and optimization software for system operations-control and modern markets. He served as President of this company until 2000, when it became the Energy Solutions business unit of Nexant, Inc. Since then he has been Principal Consultant to the unit, which supplies advanced software, including integrated FTR systems, to the
ISO/RTOs and many large utilities worldwide. His prior career comprised twelve years with universities in England, Turkey and Canada and seven years with the
Brazilian electric energy research center, all involving R&D and software production for electric power network applications. He has many research publications and has lectured all over the world. He is a Member of the US National Academy of
Engineering, IEEE Fellow, IEEE Millennium Medal recipient, and an IEEE
Distinguished Lecturer. He received his Ph.D. in electric power systems from the
University of Manchester, England.
Financial Transmission Rights – Motivations, Mechanisms and Market Basics
Open electric energy markets seek to stimulate competitive energy production.
However, the efficiency of such a market is limited by the congestion of the transmission grid. Congestion management is therefore a key factor in an open access transmission system. In North America, New Zealand and elsewhere, the solution involves Locational Marginal Prices (LMPs). This is a non-uniform pricing methodology that penalizes users who increase congestion and rewards users who reduce it. Unfortunately, LMPs have some downsides. In particular, their congestion components have high volatility, which exposes market participants to significant price uncertainly. This lecture starts by outlining the calculation of LMPs in the realtime and day-ahead markets. It then concentrates on the ancillary market for
Financial Transmission Rights (FTRs), also called Congestion Revenue Rights
(CRRs). These are financial instruments that allow transmission users to hedge
(insure) themselves against large swings in congestion prices. The FTR markets in current operation have proved to be popular and liquid.

Biography Leon White recently accepted a position with G.E. after working for Ameren for 15 years. He started with Union Electric in 1991 as a coop engineer in ESO. In 1993 he started his engineering career in substation design at Union Electric. Over the next 10 years he worked in Transmission Substation Design, Transmission Special Projects, and
Distribution Substation Design. In 2003 he joined the RTO Coordination group where he worked with Peggy Ladd and others to help facilitate Ameren’s entry into the MISO
Day 1 and Day 2 markets. In 2005 he joined Ameren Energy Marketing where he became a real-time Power Trader/Dispatcher. Mr. White has a BSEE and an MBA from SIU-
Edwardsville. He is a registered Professional Engineer in Missouri and Illinois and is a
NERC Certified System Operator.
Leon will provide an energy marketer’s perspective of using the transmission system. Abstract
Biography Peggy Ladd has been with Ameren Services since 1999, in various positions supporting
Transmission. She has managed both Short Term and Long Term Transmission Service desks. As Supervisor, she was responsible for management of the Transmission Service group while it was undergoing rapid expansion and revisions in policy. In 2001, Ms. Ladd served as General Manager, Market Development for the Alliance RTO, where she had oversight for all customer interface areas. Since Ameren's entrance into the Midwest ISO, she has routinely volunteered for committee duties, including various Ad Hoc groups.
Currently, Ms. Ladd is the Manager of Transmission Regulation and Policy with Ameren.
In the MISO arena in 2007, she began her first year as chair of the Advisory Committee, which is the over 128 stakeholder group for the RTO. She also began her second 2-year term as Vice-Chair of the 25 Vertically Integrated Transmission Owners (VITOs) on
January 1, 2007; and is finishing her second term on the Finance Sub-Committee. Ms. Ladd has a BS in Bio-Engineering from Texas A&M University and an MBA from Webster
University.
Abstract The Midwest ISO from a Transmission Owner Perspective
Since the introduction of Open Access, followed by Independent System Operators and
Regional Transmission Operators, the use of the Transmission Grid has evolved.
Wholesale Energy Markets have brought more changes. Now, regional expansion plans, and the investment in those plans, have the potential for increase infrastructure. We will discuss a brief history of the Midwest ISO, and the services it provides, as well as take a look at how the energy market affects expansion plans. The MISO impact on Ameren’s
Illinois and Missouri operations will be used for examples.