What are the key differences between New Englands first market system and SMD?
SMD changes the way electricity is priced from a single price for the entire region to pricing electricity based on how much it actually costs to produce and transmit energy to specific locations. SMD also adds a financially binding, day-ahead market to the real-time market, allowing market participants to lock in day-ahead prices and reduce their vulnerability to price fluctuations that can occur in the real-time market. What’s more, SMD provides expanded risk management opportunities to market participants.
