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The reliability pricing model (RPM) is the capacity construct proposed by PJM to implement forward procurement of generating capacity requirement recognizing its locational value. A variable resource requirement (demand curve) is used to determine the amount paid to capacity. Capacity market buyers, sellers and other parties developed a settlement agreement and filed it with US Federal Energy Regulatory...
Market power in wholesale electricity markets is of paramount concern to energy market monitors and regulators worldwide. Transmission constraints can and often do create market power opportunities. Transmission constraints into a generation-constrained load pocket can result in limited competition for meeting demand in that region due to a high local ownership concentration of supply. In this circumstance,...
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