Why Reliability Options Are the Answer in New England

In its market's current failed state, PJM sees evidence that electricity markets do not work. But that's the wrong conclusion. Price signals do work and generators predictably respond to price signals whether they are good price signals or bad price signals. Bad price signals caused New England's and PJM's problems. Here is why good price signals based on the RO approach and competitive markets will now solve New England's problems — and why PJM's RPM is not the answer.