Full Title: State Actions in Organized Markets States Strive to ‘Fix’ Markets and Retain Base Load Generation
Author(s): Raymond L. Gifford & Matthew S. Larson
Publisher(s): Wilkinson, Barker, Knaur LLP
Publication Date: September 1, 2016
Full Text: Download Resource
Description (excerpt):
That base load power is exiting wholesale power markets is an established fact. The question is whether this stems from a market design problem, or whether the market signal leading to these exits is efficient. Though controverted by some, there is general consensus that base load capacity and fuel diversity are inherently valuable to consumers from both an economic and reliability perspective.
This white paper addresses that question, and explores ways to address these potential market design problems. It documents state strategies to mitigate base load power exits from wholesale power markets — actions we term ‘around market’ solutions — and describes the difficulties states have encountered trying to implement their responses. The determination shown by states and affected entities in crafting and supporting these ‘around market’ solutions, despite encountering barriers at almost every judicial, legislative and regulatory level, illustrates that the continued loss of base load power will remain at the forefront of energy policy.