There Is No Need to Fix What Is Not Broken
Categories: Market Design, Wholesale Markets
September 20, 2012
Dr. Mathew Morey and Dr. Laurence Kirsch, on behalf of The American Public Power Association (APPA), National Rural Electric Cooperative Association (NRECA), and the New York Association of Public Power (NYAPP), studied of the capacity market operated by the New York System Operator (NYISO). In the study, the authors find that there is no need to fix what is not broken. The existing capacity market structure has provided generation capacity where it is most highly valued, using diverse fuels and meeting a variety of renewable resources and environmental policy goals. This success has been achieved without resorting to a mandatory forward market such as those used by PJM and ISO-New England. The current design does not require replacement by a mandatory forward centralized capacity market.
Relevant Links
- The study’s announcement via Press Release.
- The full study, from the The American Public Power Association’s website.