Coordination costs in a wholesale electricity market are a relevant public policy consideration. The mitigation of coordination costs, all else equal, should increase participation in the marketplace. Since Federal Energy Regulatory Commission (FERC) Order 888 was issued in 1996, the level of...

As competition has been introduced into electricity markets around the world, a fundamental challenge has been how to govern the vertical relationship between the monopolistic transmission networks and the potentially competitive activities of generation and supply. An innovative solution is to...