The Comisión Reguladora de Energía of Mexico has implemented a netback rule for linking the Mexican natural gas price to the Texas natural gas price. This paper shows that in an open economy where agents can chose between gas and alternative fuels, and where the density function describing the...

We present a hybrid mechanism application for the electrical system network expansion in Mexico, United States and Canada. The application is based on redefining the transmission output in terms of “point-to-point” transactions or financial transmission rights (FTR); rebalancing the fixed...