Transmission economics remains a difficult area. Market forces alone are generally felt to be insufficient for signaling investment due to appropriability problems and the challenges of “parallel (loop) flow.” Further, there is no generally recognized method of estimating the value of...

Empirical evidence from the New York ISO shows that the clearing prices for point-to-point congestion revenue rights, also known as financial transmission rights (FTRs), resulting from centralized auctions conducted by Independent System Operators differ significantly and systematically from the...

This paper examines the incentives that generation firms have in restructured electricity markets for supporting long-term transmission investments. In particular, we study whether generation firms, which arguably play a dominant role in the restructured electricity markets, have the incentives...

Many industries are exposed to weather risk. Weather derivatives can play a key role in hedging and diversifying such risk because the uncertainty in a company's profit function can be correlated to weather condition which affects diverse industry sectors differently. Unfortunately the weather...