. We seek an understanding of what aspects of contract design, in the face of a substantial policy shock, affect the … and their characteristics are used to determine how they influence whether or not a contract was ultimately renegotiated …. The number of years until the contract expires, a larger allowable sulfur content upper bound for plants regulated …

. Under such a contract the distributor pays the plant a fixed price if the plant is operational and nothing if plant outage … occurs. Pricing a unit-contingent contract is complicated by the fact that the plant’s true status is its private information …. The difference between the electricity spot price and the unit-contingent contract price provides an incentive for the …