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...

Initially created as afterthoughts to competitive electricity markets, capacity markets were intended to enhance system reliability. They have evolved into massive, highly controversial, and poorly understood billion-dollar institutions. Electricity Capacity Markets examines the rationales for...