Market monitoring: detection of anti-competitive behavior and appropriate responses

Under standard market design, a new approach to market power mitigation was provided in the electricity market design implemented in New England. This approach sought to balance the need to control local market power with a recognition that only proper scarcity prices could ensure the continued availability of existing units in load packets as well as to provide the signal for additional investment in generating capacity, transmission upgrades, and demand response measures. This approach sets mitigation levels to allow cost recovery by the estimated costs in new entrants.