@inproceedings{0b6c14c6c6454c848de1aa33dd220de8,
title = "Can capacity markets be designed by democracy?",
abstract = "Regional Transmission Organizations (RTOs) are stakeholder-driven organizations where changes to rules or protocols go through a process of stakeholder approval. Based on interviews with PJM stakeholders, we observe the perception that the process is held up by specific coalitions. We use voting data from the PJM stakeholder process and a model of participatory decision-making to assess these stakeholder perceptions, integrated with a model of PJM's capacity market to address how stakeholder-driven processes can design market constructs that promote reliability. We do observe a strong voting coalition by demand-side interests (electric distribution utilities and large direct-access customers) but not by supply-side interests. In theory, this demand-side coalition can act in a pivotal manner to prevent any rule change from going forward. In the capacity market redesign case in practice, the pivotal or swing participants are more likely a smaller segment of financial market participants, such as hedge funds and banks.",
author = "Seth Blumsack and Kyungjin Yoo and Nicholas Johnson",
note = "Funding Information: The authors acknowledge support from the U.S. National Science Foundation under award SES-1261867. We also thank participants at the CRRI Eastern Workshop on Regulation and Competition for helpful comments and suggestions. Publisher Copyright: {\textcopyright} 2017 Proceedings of the Annual Hawaii International Conference on System Sciences. All rights reserved.; 50th Annual Hawaii International Conference on System Sciences, HICSS 2017 ; Conference date: 03-01-2017 Through 07-01-2017",
year = "2017",
language = "English (US)",
series = "Proceedings of the Annual Hawaii International Conference on System Sciences",
publisher = "IEEE Computer Society",
pages = "3075--3084",
editor = "Bui, {Tung X.} and Ralph Sprague",
booktitle = "Proceedings of the 50th Annual Hawaii International Conference on System Sciences, HICSS 2017",
address = "United States",
}