Thad Hill, President of Calpine, said: “Capacity markets don’t cost more, are far more reliable and stable than other market designs. Calpine would not invest hundreds of millions of dollars into brand new capacity. We think that is true of other investors as well.
Generators have been seeking a capacity market as a way to recoup costs following a 73 per cent drop in the price of natural gas, which drove electricity prices lower. Last year, the TPUC responded by raising the cap on wholesale power prices to $4500/MWh, from $3000/MWh, with the limit rising to $9000 in June 2015.