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Transmission Benefits and Cost Allocation under Ambiguity
Based on the model and numerical tests we discuss several issues, including 1) establishing a valid counterfactual against which to measure benefits, 2) allocating cost to new and incumbent generators vs. solely allocating to loads, 3) calculating benefits at the portfolio vs. the individual project level, 4) identifying losers in a surplus-enhancing transmission expansion, and 5) quantifying the divergence between cost allocation decisions made ex ante and benefits realized ex post.
Beyond capacity: contractual form in electricity reliability obligations
Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations.
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