Enzo Sauma y Shmuel Oren. 2006. Incentives of Generation Firms for Long-Term Investment in the U.S. Electricity Transmission System, Proceedings of the Institute for Operations Research and the Management Science (INFORMS) Annual Meeting, Pittsburgh, U.S.A., 5-8 de Noviembre, 2006. (2006)

Incentives of Generation Firms for Long-Term Investment in the U.S. Electricity Transmission System

Revista : Proceedings of the Institute for Operations Research and the Management Science (INFORMS) Annual Mee
Tipo de publicación : Conferencia No DCC

Abstract

We study the incentives that generation firms have in the US electricity markets for supporting long-term social-welfare-improving transmission investments. We also examine how such incentives are affected by the ownership structure of financial transmission rights (FTRs). We show that generation firms may have disincentives for making socially beneficial transmission investments in the US system. However, we also show how this situation could be reversed by correctly allocating FTRs.