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On December 19, 2019, the Federal Energy Regulatory Commission (FERC) issued an order dramatically expanding the Minimum Offer Price Rule in PJM’s capacity market. The order changes how electricity-generating resources that receive state subsidies are treated in federally regulated wholesale...
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Motivated by recent interventions by the states of New Jersey and Maryland and the introduction of PJM’s Minimum Offer Price Rule (MOPR) for capacity markets, we analyze the impact of subsidized government investments in electrical generation on electricity markets. We extend the model of...
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