At any rate, the insiders had a nice long discussion about energy markets and slipshod enforcement tactics. I know Barney has been telling the kiddies that they're "special" for many years now, but he wasn't singing about energy markets.
They're just another product of the PJM cartel's enabling of its members profits.
Bowring said the process that RTOs use to create market rules is flawed because market players get to vote on those rules, and sometimes they block the passage of needed reforms because they are engaging in the behavior that a new rule would prohibit.
Bowring said market participants also have a duty to inform market overseers of faulty rules and false arbitrage opportunities and to not engage in such behavior once they suspect it to be wrong. He said the "vast majority" of market players do just that, and that those who think "they're the smartest guys in the room" by figuring out how to exploit some rule loophole are usually not since others have also seen that opportunity but chose to do the right thing by not engaging in such behavior.
They need to realize that they need outsiders to make their silly markets work. If outsiders aren’t allowed to make money playing by the market rules without suffering the occasional random sacrifice from their ranks to serve as an example of a "bad egg" and a demonstration of FERC's power, then perhaps they should just outlaw their participation altogether. Will the beatings continue until morale improves?
It’s like slopping a whole bunch of chum into the water and complaining when sharks show up instead of some pretty goldfish.