A Modest Proposal: A Market-Based Approach to Generation Interconnection Process Reform

Abstract

Rather than allocating queue positions and priority processing rights using a “first-come, first-served” or some other administratively determined allocation scheme, a more robust and defensible proposal would allocate queue positions and processing priority to developers who value them the most because they have the highest marginal costs of delay or waiting. Such an approach could be structured as a price-based auction.