California market design: the third generation

California electricity industry was restructured by way of California Assembly Bill 1890 resulting among other entities California Independent System Operator (California ISO) and the power exchange. Earlier in 2000 the Power Exchange became defunct necessitating the redesign of the California electricity market structure. In the year 2007 California ISO will be implementing in production a new locational marginal pricing-based market design with features among others, to efficiently: 1) manage transmission congestion, 2) enhance reliability, 3) mitigate market power, 4) price network constraints, and 5) attract infrastructure and resource investments. The speaker elaborates on the lessons of the past, and describe the model for the future