This course provides a deep dive into the structure, pricing mechanisms, and regulatory frameworks that shape electricity markets in the United States. Students will explore both vertically integrated utility models and competitive wholesale markets operated by Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs). Through comparative analysis, the course unpacks intersections among market designs, transmission planning, cost recovery, and system reliability.
 
Key topics include wholesale market operations (energy, capacity, ancillary services), retail rate design, and the mechanics of locational marginal pricing (LMP). Students will learn to interpret market signals, understand volatility and risk, and assess the role of power purchase agreements (PPAs), hedging strategies, and long-term contracting in securing supply.
 
The course also examines how evolving market structures are adapting to policy and technology - including decarbonization and electrification, the rise of distributed energy resources (DERs), and increasing demand for grid flexibility. Case studies such as the 2021 Texas blackout (ERCOT) will illustrate how market design decisions have real-world consequences for reliability, pricing, and public trust.
 
COURSE TOPICS:

• Market Overview: Vertically Integrated Regulated vs. Restructured Competitive Markets
• How Wholesale Electricity Markets Work (Energy, Capacity, Ancillary Services)
• Role of ISOs in Market Operations (Focus on PJM, CAISO, ERCOT, NYISO) and How Wholesale Electricity Markets Work (Energy, Capacity, Ancillary Services)
• Transmission and Distribution System Planning and Cost Recovery in Vertical and Organized Markets
• Locational Marginal Pricing (LMP) and Market Clearing
• PPAs, Hedge Structures, and Long-Term Contracts
• Retail Markets and Utility Rate Design
• Trends in Market Design: LCOE metrics, Decarbonization, Flexibility, and DER Participation
• Case Study: Texas Blackout and Market Impacts (ERCOT)

Continuing Education Units (CEU) : 0

You'll walk away with

• An understanding of how electricity markets are structured and operated in the U.S. in both RTO/ISO, and vertically integrated utility systems
• Knowledge of wholesale and retail electricity pricing, including pricing volatility and uncertainty.
• How to analyze market signals, contracts, and the role of power purchase agreements (PPAs) and utility-owned supply.