Hancock's blog

I'm talking to Larry Ruff, another giant of energy market reform. Larry worked with Bill Hogan, whom many of you enjoyed listening to on the podcast last year, on the design of the UK and New Zealand electricity markets in the 1990s but he's probably best known as the brain behind Victoria's gas market. He's been watching the NZ regime with interest and recently put in an independent submission to the NZ Gas Industry Company's Review of Transmission Access and Capacity Pricing about which he agreed to come and talk to us.

Last week, Larry explained the role of the transmission system operator ("TSO") in managing the physical feasibility of gas flows as people change their mind about how much gas they want to use where. This week he debunks the received truth that because you can control physical gas flows (which you can't with electricity), it makes sense to allocate gas transmission capacity as contractual "paths".

I'm talking to Larry Ruff, another giant of energy market reform. Larry worked with Bill Hogan, whom many of you enjoyed listening to on the podcast earlier in the year, on the design of the UK and New Zealand electricity markets in the 1990s but he's probably best known as the brain behind Victoria's gas market. He's been watching the NZ regime with interest and recently put in an independent submission to the NZ Gas Industry Company's Review of Transmission Access and Capacity Pricing about which he agreed to come and talk to us.

Last week, Larry looked at the problems that arise with point-to-point access regimes for gas transmission and the metaphor that a pipeline is like a bundle of straws. This week he explains the role of the transmission system operator ("TSO") in managing the physical feasibility of gas flows as people change their mind about how much gas they want to use where.

I'm talking to Larry Ruff, another giant of energy market reform. Larry worked with Bill Hogan, whom many of you enjoyed listening to on the podcast earlier in the year, on the design of the UK and New Zealand electricity markets in the 1990s but he's probably best known as the brain behind Victoria's gas market. He's been watching the NZ regime with interest and recently put in an independent submission to the NZ Gas Industry Company's Review of Transmission Access and Capacity Pricing about which he agreed to come and talk to us.

Last week, we went back in time to the origins of gas transmission to try and understand where NZ's current access arrangements came from. This week, Larry looks at the problems that arise with point-to-point access regimes for gas transmission and the metaphor that a pipeline is like a bundle of straws.

I'm talking to Larry Ruff, another giant of energy market reform. Larry worked with Bill Hogan, whom many of you enjoyed listening to on the podcast last year, on the design of the UK and New Zealand electricity markets in the 1990s but he's probably best known as the brain behind Victoria's gas market. He's been watching the NZ regime with interest and recently put in an independent submission to the NZ Gas Industry Company's Review of Transmission Access and Capacity Pricing about which he agreed to come and talk to us.

Last week, we talked a bit about gas market design and the reasons that the NZ Gas Industry Company is looking at transmission access arrangements. This week, we go back in time to the origins of gas transmission to try and understand where NZ's current access arrangements came from.

I'm talking to Larry Ruff, another giant of energy market reform. Larry worked with Bill Hogan, whom many of you enjoyed listening to on the podcast earlier in the year, on the design of the UK and New Zealand electricity markets in the 1990s but he's probably best known as the brain behind Victoria's gas market. He's been watching the NZ regime with interest and recently put in an independent submission to the NZ Gas Industry Company's Review of Transmission Access and Capacity Pricing about which he agreed to come and talk to us.

In this first episode we talk a bit about gas market design and the reasons that the NZ Gas Industry Company is looking at transmission access arrangements.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

Last week, Conrad Edwards, who's the Senior Development Analyst at the NZ FTR Manager, outlined the Electricity Authority's recent work to bring FTRs to market in NZ, key characteristics of the product that will be auctioned in May 2013 and how they may evolve. In this final episode, Bill gives his reaction to the New Zealand proposals, and wishes us well!

That Bill Hogan is a Professor of Energy Policy at Harvard University and director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

Last week, Conrad Edwards, who's the senior development analyst at the NZ FTR Manager, talked us though some of the twists and turns we've taken since committing to implement FTRs in 1995. This week, Conrad outlines the Electricity Authority's recent work to bring them to market, key characteristics of the product that will be auctioned in May 2013 and offers some thoughts on how they may evolve.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the Guiding Mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

Last week, Bill talked about 2 areas in which US experience is instructive - how long to issue rights for and their use in funding merchant transmission. This week, Conrad Edwards, who's the Senior Development Analyst at the NZ FTR Manager, talks though some of the twists and turns we've taken since committing to implement FTRs in 1995.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

Last week, Bill talked about why NZ didn't implement FTRs in the 1990s and what we learned about revenue adequacy from the early FTR implementations in the US. This week he introduces two more areas in which US experience is instructive - how long to issue rights for and their use in funding merchant transmission.

That Bill Hogan is a Professor of Energy Policy at Harvard University and Director of the enormously influential Harvard Electricity Policy Group is impressive. Locally, however, he has particular status as the guiding mind behind the design of New Zealand's wholesale electricity market.

One of Hogan's key recommendations in the establishment of the wholesale market was that Financial Transmission Rights ("FTRs") be created alongside it. This wasn't part of the original implementation but, 16 years later, the Electricity Authority has appointed an FTR manager with the responsibility of running our first FTR auction in May 2013.

Professor Hogan hasn't worked in New Zealand since the early 2000s but was interested and pleased to hear of this new development. He kindly agreed to talk to the podcast about FTRs and why they're so important.

Last week, Bill outlined their particularly important property of revenue adequacy. This week he talks about why NZ didn't implement FTRs in the 1990s and what we have learned about revenue adequacy from the early FTR implementations in the US.