PT - JOURNAL ARTICLE AU - Roger D. Feldman TI - Wagon Train AID - 10.3905/jsf.2002.320260 DP - 2002 Jan 31 TA - The Journal of Structured Finance PG - 5--6 VI - 7 IP - 4 4099 - https://pm-research.com/content/7/4/5.short 4100 - https://pm-research.com/content/7/4/5.full AB - At the core of electric industry deregulation is the availability of market-based rates (MBR) for new power generation. While MBR is not granted without regulatory review, the standards in the past have proven to be readily met. FERC heretofore has resolved one of those standards, the absence or mitigation of market power in generation, by application of „hub-and-spoke” analysis, i.e., the measurement of relevant market shares in both installed capacity and uncommitted capacity. Now MBR applications may be subject to new challenges because FERC is studying a new approach based on a broader analysis of market characteristics. However, if care is not taken, policies could be instituted that do not serve to address the root of much de facto market power: insufficient transmission infrastructure and inadequate attention to congestion pricing issues.