Full Title: Understanding the Interaction between Regional Electricity Markets and State Policies
Author(s): Sarah K. Adair and Franz T. Litz
Publisher(s): Duke Nicholas Institute for Environmental Solutions
Publication Date: November 1, 2017
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Description (excerpt):
Regional electricity markets—operated by regional transmission organizations (RTOs)— span multiple states and bring significant benefits to the electricity grid. States policies—such as renewable or clean energy portfolio standards or procurement mandates—have always helped shape market outcomes, but increasingly they are aimed at addressing perceived market shortcomings. Recent state policy actions to support new or existing resources in RTO markets have renewed attention to issues of RTO market design, including how RTO markets and state policies interact. Those actions, a rapidly changing electricity sector, and low electricity and capacity prices have heightened the urgency of calls for changes in market designs to address perceived inequities, such as market designs that fail to value certain environmental or reliability attributes.