Long-Term Rights for New Resources: A Crucial Missing Ingredient in RTO Markets

Abstract

Unless generation that can produce low-cost energy is brought back into the mix, regional transmission organizations will become just a very expensive means to deliver high-cost energy and to allocate increasingly scarce, natural monopoly transmission resources to those prepared to pay the most. For baseload as well as renewable generation that cannot be located close to load, long-term transmission rights ensure delivery of their output at a predictable price.