Market Design & Resource Adequacy

Fostering Competitive Markets and Reliability

LAI has worked with ISOs / RTOs throughout the Northeast on a broad range of market design and resource adequacy issues. We have advised utilities, state regulatory commissions, and other market participants on designing and improving wholesale power markets. LAI has represented NYISO as well as generation companies in New York City on the NYISO Spot Capacity Market (Demand Curve) parameter reset process. We have represented stakeholder groups on diverse matters involving PJM’s Reliability Pricing Model and ISO-NE’s Forward Capacity Market, as well as issues ranging from transmission withdrawal and interconnection rights and system impact studies.

We understand the pros and cons of alternative market designs, FERC-inspired mitigation measures, locational pricing frameworks, and other innovations to promote resource adequacy. We have the multi-disciplinary skill set needed to quantify the commercial implications of proposed changes to capacity market mechanisms in PJM, New York and New England. Locational markets adhere to the principles of cost causality, but create complex tradeoffs for load serving entities, transmission owners, and the ISOs. LAI’s experts can accurately gauge the tradeoffs underlying planning criteria and market assumptions affecting capacity clearing dynamics in each RTO.

LAI’s advisory services in this area include:

• Evaluating the impact of generation resource attrition, entry, and transmission infrastructure changes on capacity and energy prices
• Deciphering arcane transmission tariff provisions and the functionality of new market mechanisms
• Designing advanced quantitative solutions for complex commercial transactions
• Assessing the strategic implications associated with market conditions and regulatory developments
• Identifying and evaluating cost effective resource options
• Analyzing ICAP valuation implications for DSM, wind, and other resources