Full Title: Return of the RTO: Auction Results Portend Recovery
Author(s): Adil Sener, George Katsigiannakis, Maria Scheller, Shanthi Muthiah, and Judah Rose
Publisher(s): ICF International
Publication Date: June 1, 2014
Full Text: Download Resource
Description (excerpt):
The doubling of RTO capacity prices indicates that market reforms are helping to improve the market through the elimination of inappropriate preferences for demand response (DR) and imports. The price movement is partially driven by other market dynamics including expanded internal transmission capabilities, the tightening MISO supply/demand balance, and tightening environmental regulations. ICF expects capacity prices will follow a general upward trend in future auctions, but the extent and rate of the increase (and volatility around the generally increasing trend) is more difficult to predict.