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...

Optimal capacity allocation for investments in electricity generation assets can be deterministically derived by comparing technology specific long-term and short-term marginal costs. In an uncertain market environment, Mean-Variance Portfolio (MVP) theory provides a consistent framework to...