‘Almost nobody is happy’ with capacity markets at conference
But Devin Hartman, manager of electricity policy at the free market think tank R Street Institute, also was skeptical. He said it’s unworkable to administratively correct for subsidies in a pricing mechanism, calling it “a recipe for unintended consequences.”
“What constitutes a material subsidy?” he asked. “We’re going to have some fun with that — in perpetuity. It’s important to recognize that these markets have always had subsidies. Every resource has some degree of price subsidy. I don’t see how [PJM Monitor] Joe Bowring is going to come up with a screen to price correct for Price-Anderson,” referring to the law limiting liabilities for nuclear plant operators. “Where are you going to draw the line?”
