23.1.Purpose and Objectives

23.1.1These ISO market power mitigation measures (“Mitigation Measures”) are intended to provide the means for the ISO to mitigate the market effects of any conduct that would substantially distort competitive outcomes in the ISO Administered Markets, while avoiding unnecessary interference with competitive price signals.  Consistent with the provisions of the ISO’s Market Monitoring Plan that is set forth in Attachment O to the ISO Services Tariff, these Mitigation Measures are intended to minimize interference with open and competitive markets, and thus to permit, to the maximum extent practicable, price levels to be determined by competitive forces under the prevailing market conditions.  To that end, the Mitigation Measures authorize the mitigation only of specific conduct that exceeds well-defined thresholds specified below.

23.1.2In addition, the ISO and its Market Monitoring Unit shall monitor the markets it the ISO administers for conduct that the ISO or the Market Monitoring Unit determines constitutes an abuse of market power but that does not trigger the thresholds specified below for the imposition of mitigation measures by the ISO.  If the ISO identifies or is made aware of any such conduct, and in particular conduct exceeding the thresholds for presumptive market effects specified in Section 23.3.2.3 below, it shall make a filing under Section 205 of the Federal Power Act, 16 U.S.C. § 824d (1999) (“§ 205”) with the Commission requesting authorization to apply appropriate mitigation measures.  Any such filing shall identify the particular conduct the ISO believes warrants mitigation, shall propose a specific mitigation measure for the conduct, shall incorporate or address the recommendation of its Market Monitoring Unit, and shall set forth the ISO’s justification for imposing that mitigation measure.  The Market Monitoring Unit’s reporting obligations are specified in Sections 30.4.5.3 and 30.4.5.4 of Attachment O.  The responsibilities of the Market Monitoring Unit that are addressed in this section of the Mitigation Measures are also addressed in Section 30.4.6.2.1 of Attachment O.