What are the benefits to implementing SMD in New England?
The goal of SMD is to provide New England a market with fair and understandable rules that produce predictable results: greater economic efficiency and competition, enhanced power system reliability and reasonable wholesale electricity prices. SMD will: • Provide clear economic signals indicating where investment in the bulk power system is needed, including the location of new generating units, expansion of transmission facilities and participation in demand-side management programs—elements needed in a well-functioning market to alleviate constraints, increase competition, and improve the system’s ability to meet power demand. • Provide the correct price signals to influence economic and efficient real-time market behavior and expand the options for energy transactions, making the market more liquid more competitive, and more economically efficient. • Provide mechanisms to hedge against volatility and uncertainty of real-time prices and to hedge against higher wholesale prices caused
