Feb 17, 2012
from
"Oh, your question never got completed. It looked like it was going to be a good one though.
But let me anticipate where you might have been headed:
My position is that the bidding behavior of an IPP into the WESM is unaffected by the presence or absence of any bilateral it may have in place, if the IPP is profit-maximizing.
So if all IPPs are profit-maximizing, WESM prices are unaffected by bilateral contracts, or the lack thereof.
Although the lack of a bilateral may influence whether an IPP departs the market. That's a bit of a different issue, but it would affect prices."
- Nick in Manila