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Price Caps Destroy Incentives for On Peak Generation

This article discusses the need for price caps and incentives to encourage on-peak generation and address the falling reserve margins in the WSCC region. It also highlights California's dependence on imports to balance its energy supply and how the supply/demand imbalance has been hidden by above-normal hydro availability in recent years.

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Price Caps Destroy Incentives for On Peak Generation

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  1. Price Caps Destroy Incentives for On Peak Generation

  2. The WSCC’s Reserve Margins Have Fallen to Very Low Levels in Recent Years (based on WSCC data and adjusting for realistic levels of dependable capacity)

  3. California Has for Years Depended on Imports to Balance Its Energy Supply (based on WSCC data and adjusting for realistic levels of dependable capacity)

  4. The Supply/Demand Imbalance Has Been Masked by Several Years of Above-Normal Hydro

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