In this paper we discuss two infrastructures important for proficient management of the network, namely the secondary markets for transmission rights and the open access same time information systems (OASIS).
Following the restructuring process the participants in the electric power industry are engaging in complex market activities to meet their electricity needs. Hence, the value of the energy and the transmission portion of electric services are determined by employing the market mechanism. These values once determined, are then communicated among the market participants through the prices specified on various contracts.
Many market participants enter info forward (delivery) contracts for energy. The forward price may be described as the spot market price for delivery of a commodity at a fixed time in the future. As a counterpart to the forward contract marketplace for energy, the secondary market for transmission provides the necessary mechanism for supporting the market activities so that the change in value is readily conveyed to all of the market participants of the forward contracts for transmission portion of electric services in the form of the intermediate term transmission contracts. Here the market participants may be the holders of the physical transmission rights, the holders of the financial transmission rights and/or the bidders in the spot market.
Without the introduction of the secondary markets for transmission rights we can compare the workings for the transmission rights in the form of the intermediate term transmission contracts proposed in this paper with the transmission congestion contracts (TCC) and the flow gate rights.