Why is ISO New England implementing SMD?
SMD reflects the implementation of market improvements that were deemed necessary at the origin of wholesale free-market competition in New England. ISO New England first launched a single energy clearing price wholesale market in 1999. At that time, free market competition was new to the electric power industry, so the early days of wholesale market operation in the U.S. were considered somewhat experimental. Each area of the country that developed wholesale markets created their own unique market design. This provided an opportunity to learn about wholesale market structures in New England and elsewhere. ISO New England elected to implement SMD 1.0, a combination of salient portions of PJM Interconnection’s market architecture and ISO New England’s best practices, to enhance the wholesale electricity marketplace and to bring about significant benefits to the region.
