Fortnightly Magazine - December 2005

PJM's New Game

If transmission can substitute for gen-plant capacity, why not clear both products in the same auction?

PJM applied to FERC for authority to impose a new regime of requirements for reserves of electric generating capacity. This new construct, known as the reliability pricing model (RPM), would replace PJM’s current capacity market.

Battle Royal: Pulverized - Coal vs IGCC

The battle for the future of coal-fired power is heating up. Recent developments give IGCC a fighting chance.

Does the future belong to pulverized coal or integrated gasification combined-cycle technologies? The answer will determine how the industry manages load growth and regulatory risks, while protecting shareholders and ratepayers.

The Capacity Market Enigma

Why haven’t reliability markets developed?

Capacity and energy, although related, are not identical products. If we are to continue to rely on competitive market forces to provide new generation supplies, we need separate, long-term, installed capacity markets.

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