Prepared by Julia Frayer and Eva Wang of London Economics International LLC
WIRES commissioned London Economics International LLC (“LEI”) to provide a report on market resource alternatives (“MRAs”). The purpose of this Report is to provide external parties with a clear understanding of MRAs, and compare their features – advantages and shortcomings – relative to transmission. In addition, based on analysis of how MRAs have been examined by planners and regulators, LEI also proposes a set of analytical tools and techniques that can be used to effectively evaluate MRAs alongside transmission investment. The Report consists of four chapters: the first chapter addresses the question “what are MRAs and why do we need to analyze them?”; the second chapter discusses how MRAs are considered in federal and regional policy; the third chapter shows how MRAs are used in organized markets in the U.S. through a case study analysis; and the fourth chapter provides a proposed ”toolkit” of analytical tools and techniques that would allow for the effective evaluation of MRAs within the transmission planning environment.