Synapse prepared a report which examined the goals of load response programs under development in wholesale markets.  This report detailed existing programs in the Northeast, describing in general terms the mechanisms available to meet those goals, presented issues that could be barriers to efficient programs, and offered recommendations for moving toward a market in which demand could influence the supply curve through customer opportunities to respond to peak prices and reliability concerns. Synapse participated in stakeholder meetings in New England to develop a load response program for the summer of 2001.  Project completed in January 2002.

Synapse reviewed the power procurement and risk management practices of Nevada Power Company and Sierra Pacific Power Company in the western markets for a test year that included the summer of 2001. The results of this review were presented in the testimony of Bruce Biewald (PUCN Dockets 01-11029 and 02-2002) and Paul Peterson (PUCN Docket 01-11029). Synapse concluded (a) that the Companies relied too much upon standard products (e.g., 6x16 purchase blocks), (b) that the Companies overlooked or discounted indications that market forces or regulatory actions would address high summer prices in the western markets prior to the summer of 2001, and (c) that specific forward purchases made in early 2001 had costs in excess value of $225 million (NPC) and $38 million (SPPC). Project completed in May 2002.

Synapse reviewed Northeast Utility's proposed treatment for the $829 million it received from the sale of the Millstone nuclear power plant.  The review focused on the reasonableness of a number of adjustments sought by Northeast Utility that would enable it to keep more than one-half of the sale proceeds instead of passing them through to ratepayers as a reduction in nuclear stranded costs.  Project completed in January 2002.

Synapse quantified the net revenues that PG&E, the owner of the Brayton Point Station, likely earned during the years 1999 to 2002 and would likely earn during the years 2003 to 2013.  Synapse also conducted an independent assessment of whether the conversion of the Brayton Point Station to a closed cycle water cooling system would adversely affect electric system reliability.  The results of Synapse’s analyses were presented in a series of memoranda that the Attorney General submitted to the U.S. EPA.  Project completed in October 2002.

Synapse surveyed the increasing use of complex corporate ownership structures and LLCs to own and operate nuclear power plants and reviewed the NRC’s oversight of these developments.  Synapse also identified those areas in which changes need to be made to assure that there are adequate funds available to meet NRC-imposed requirements, including post September 11, 2001 security-related requirements and Price-Anderson Act nuclear accident insurance obligations, and to assure that decommissioning funds are adequate and are protected. Project completed in August 2002.

Synapse subcontracted to Camp Dresser & McKee to provide Reading with an updated customer information and financial management software system. Synapse provided assistance regarding the electricity market and customer and business strategies that should be factored into the software system. Project completed in July 2001.

Bruce Biewald presented “Demand Response in Electricity Markets” at the NASUCA Mid-Year Meeting in Santa Fe, New Mexico on June 18, 2001.

Synapse investigated the likely impacts of a proposed Massachusetts Department of Environmental Protection regulation mandating the reduction of NOx and SO2 emissions from older power plants.  Synapse's analysis found that, contrary to claims of the electric generation companies, power plants would be able to comply with the bill without threatening the reliability of power supply in Massachusetts and neighboring regions

Synapse assisted the Staff in preparing a white paper on the need for and role of reliability standards in Delaware, in light of recent reliability concerns in the region.  Synapse focused on the role of PJM market rules on reliability, as well as the role of energy efficiency in addressing reliability concerns. Project completed in 2001.

David Schlissel presented “ISO-New England’s Generating Unit Availability Study: Where’s the Beef?” at a Restructuring Roundtable on June 29, 2001.

Synapse developed guidelines for the analyses of market power in wholesale electricity markets, and conducted simulation analysis of market power in the regional electricity market.  Synapse's analysis included computer modeling of the regional electricity market using the PROSYM model.  Project completed in 2001.

Bruce Biewald presented “Quality of Service in Performance-Based Regulation: US Experiences” at the Seminar on Regulation of Electricity Supply Quality in Milan, Italy on June 8, 2001.

In 1996 the Federal Energy Regulatory Commission prepared a landmark environmental impact statement (EIS) on its proposal to open the wholesale electricity markets to competition.  Synapse reviewed the EIS and compared its forecast to actual experience between 1995 and 2000.  The analysis found that actual air emissions were even higher than those projected by FERC in its high environmental impact scenario.  Project completed in October 2001.