This paper examines the regulatory incentive mechanisms for efficient investment in the transmission network under the ISO and Gridco institutional framework. By considering a new element associated with power flow, we develop an extended price cap mechanism that can properly internalize...

Greenhouse gas (GHG) emissions trading, green pricing programs and renewable portfolio standards (RPS) are three concurrent policies implemented in the United States to reduce reliance on fossil fuel and GHG emissions. Despite their differences in policy targets, they are closely related and...