New England Public Policy Center Policy Brief No. 06-2
by Carrie Conaway

Full-text paper

New England’s deregulated electricity market has not provided incentives for new investment in badly-needed capacity. This policy brief describes a settlement accepted by the Federal Energy Regulatory Commission on June 15, 2006 to address this problem by creating a forward capacity market for electricity in the region. It also discusses the region’s prior, failed attempts to create a locational installed capacity market (LICAP) that set the stage for the settlement..