System operations under the Federal Energy Regulatory Commission's Standard Market Design

The paper deals with the Standard Market Design (SMD), proposed by the Federal Energy Regulatory Commission (FERC), is not completely defined. Several issues were left open for the industry to provide comment. Industry participants and state regulators have supplied their comments with varying degrees of diversity. The proposed SMD is not just a change in market design, but rather it is a major restructuring of the way that the large majority of the electric industry participants conduct their everyday routine business. Furthermore, it is an intrusion, by FERC, into certain retail markets, which fall under the jurisdiction of the state public utility commissioners.