Markets find optimal outcomes via efficient prices and hedging 2

Demand capacity investment is a variable 3

Focus on removing barriers to open access 3

Price caps lead to a mismanagement of scarcity 4

Expose new large loads to price signals 5

Consider hedging over price caps to protect mass-market consumers 5

Consider mandatory forward hedging where appropriate 6

Capacity markets have downsides 6

Demand differs in risk appetite 6

Don’t cross-subsidize with electricity rates or transmission 7

Restricting renewables raises prices 7

Create environments for optimal supply and demand investment 7