Abstract :
In its marketʹs current failed state, PJM sees evidence that electricity markets do not work. But thatʹs the wrong conclusion. Price signals do work and generators predictably respond to price signals whether they are good price signals or bad price signals. Bad price signals caused New Englandʹs and PJMʹs problems. Here is why good price signals based on the RO approach and competitive markets will now solve New Englandʹs problems — and why PJMʹs RPM is not the answer.
