How does SMD reduce seams?
ISO New England and its neighbors recognize the restraint that seams put on trading and have been working together over the past several years to lessen the differences that inhibit the free flow of energy between the regions. The adoption of PJM market rules along with the installed capacity (ICAP) arrangements and a market mitigation plan substantially similar to those of the New York ISO, coupled with the application of consistent scheduling rules across all its external ties, will significantly reduce the differences among the markets of the Northeast. By designing SMD in this way, seams issues will be reduced and market participants trading within the three control areas will find it easier to do business regionally.
