- Sep 7, 2020 3:03 pm GMT
Another attempt to resolve State and Federal frictions in capacity markets dies on the battlefield. It seems to me FERC has already shown it's hand on how to accommodate "Green" resources to meet State energy goals: "In a competitive market, where neither buyer nor seller has significant market power, it is rational to assume that the terms of their voluntary exchange are reasonable, and specifically to infer that the price is close to marginal cost, such that the seller makes only a normal return on its investment.” Tejas Power Corp. v. FERC (1990). "
Which is why the Always on Capacity Exchange (AOCE) design employs an exchange model for price discovery, eliminating price distortions, and clears the market based on resources needed for essential reliability services, after acquiring green resources needed for State energy policies and Green buyer needs. Green resources and essential grid services resources clear separately to avoid price distortions.
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