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Market power analysis
Market-based rate proceedings
In the United States, wholesale generators who do not want their electric sales to be subject to cost-based rate caps must apply to the Federal Energy Regulatory Commission (FERC) for market-based rate authority. Applicants must demonstrate that they do not have (or have adequately mitigated), horizontal and vertical market power. Bates White experts have extensive experience with the tests FERC has adopted for assessing market power, including detailed Delivered Price Test (DPT) analysis, engineering analysis of transmission systems and power flows, and analysis of observed electric exchanges to determine their consistency with a competitive market. We use our extensive experience in market power assessment to develop appropriate mitigation measures to ensure competitive market outcomes.
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