New paper on non-convexity, uncertainty, and uplift in wholesale electricity markets: in our NYISO simulations, operational policy mattered more than the pricing rule, and uncertainty + look-ahead price inconsistency drove most make-whole payments. doi.org/10.1109/TEMP...

Price Consistency and Uplift in Wholesale Electricity Markets

The non-convex technical constraints governing power production have led wholesale market operators to implement alternative pricing schemes intending to ensure that market participant incentives are ...

doi.org

New paper: as power systems add more wind, solar, and storage, prices depend more on uncertainty and storage opportunity costs. We show deterministic production cost models can misvalue flexibility and understate real-time price dynamics. doi.org/10.1088/2753...

Price formation and flexibility valuation in production cost modeling

Price formation and flexibility valuation in production cost modeling, Smith, Kaleb, Santarém de Araújo, Hugo, Mays, Jacob

doi.org

Our article "Operational Uncertainty and the Missing Money Problem" is now in Energy Economics (authors.elsevier.com/c/1lxeFW3fd1v69). The paper investigates capacity markets and operations, finding that current configurations in the US slightly undercompensate baseload plants relative to peakers.

Did not see that coming!

Jesse D. Jenkins@jessedjenkins.com · 11mo ago

Do it! More than two gigawatts of round the clock emissions free power deliverable straight into NYC. Closing it was a huge mistake. Let's fix that mistake now. www.politico.com/news/2025/09... 🔌💡⚛️

💡 New Transmission Paper alert 💡 “Electric transmission value and its drivers in United States power markets” just went live in Nature Communications! Kudos especially to Julie Mulvaney Kemp for getting this work to the finish line. doi.org/10.1038/s414...

Our paper "Rethinking capacity market fundamentals," about several issues in accreditation and non-performance penalties in capacity markets, is now published in Energy Economics and is open access for the next 50 days at this link: authors.elsevier.com/c/1ldcmW3fd1...

New working paper, "Operational Uncertainty and the Missing Money." Here we argue that competitive electricity markets probably overcompensate peaking resources relative to those whose production is spread over more hours of the year (e.g., nuclear and hydro) papers.ssrn.com/sol3/papers....

We are recruiting for an undergraduate summer research opportunity in electricity market modeling, through Cornell's Office of Inclusive Excellence (sites.coecis.cornell.edu/lsampreu/). If you or someone you know wants to spend the summer in Ithaca and get into this area, check it out!

I'm starting off 2025, a year when I'll write a lot about the role of markets and innovation in enabling our future power systems, by writing a series about RTOs as wholesale market platforms. Part I: economic history. 📉📈 and 🔌💡 knowledgeproblem.substack.com/p/regional-t...

Regional Transmission Organizations as Market Platforms I

What's the origin story of wholesale power markets?

knowledgeproblem.substack.com

🔌💡 Our new study led by @fnbillimoria.bsky.social, "Hedging and tail risk in electricity markets," is now out in Energy Economics. 50-day access link: www.sciencedirect.com/science/arti...

Hedging and tail risk in electricity markets

One of the persistent concerns in scarcity-based electricity market designs is that markets for long-term contracts are highly illiquid or ‘missing’. …

sciencedirect.com

Nationally, winter grid operations vary from summer While summer risk tends to be concentrated in the evening hours, winter risk is bimodal, split between evening and morning across a wider range of hours. #energysky 🔌💡

Published 43 years ago:

New in Energy Economics, our paper on the challenge of allocating the cost of transmission in a manner "roughly commensurate with benefits" when nobody can agree what the benefits are. 50-day share link: authors.elsevier.com/c/1kB0SW3fc~...

Thread summarizing our new paper on transmission cost allocation #EnergySky

Josh Macey@joshuamacey.bsky.social · 2y ago

I am happy that my paper on transmission line cost allocation with @jacobmays.bsky.social is now out in the energy law journal. papers.ssrn.com/sol3/papers..... The paper is a deep dive on the law and economics of transmission lines. Full disclosure: I am a transmission line enthusiast.

I am happy that my paper on transmission line cost allocation with @jacobmays.bsky.social is now out in the energy law journal. papers.ssrn.com/sol3/papers..... The paper is a deep dive on the law and economics of transmission lines. Full disclosure: I am a transmission line enthusiast.

Cornell is hiring an environmental/energy/resource economist (open-rank). Join our vibrant academic community working on the major sustainability challenges facing the world today... & have the option to make this part of your daily commute :) Plz share! academicjobsonline.org/ajo/jobs/28657

One nuance here is that compensating people who had contracted for energy and were not supplied energy is completely consistent with efficient markets.

Emily Grubert@gruberte.bsky.social · 3y ago

A big part of my support for public ownership / control of critical services like “warmth” is about establishing a positive obligation to serve, especially in the transition. Otherwise you let people die when it’s not profitable.

I understand the motive, but it doesn't seem like MISO has really thought this proposal through.

TerraWatts2010@terrawatts2010.bsky.social · 3y ago

Alliant, DTE and AES Indiana told FERC in separate filings the proposed interconnection queue cap may make it harder for them to meet their clean energy goals and reliability obligations. www.utilitydive.com/news/ferc-mi...

Making my Bluesky debut with a new working paper, “Sequential Pricing of Electricity,” on price formation and resource remuneration in electricity markets with significant storage: optimization-online.org/2023/10/sequ...