[1] The load pockets represent a problem for the deregulated electricity markets, as in the absence of regulation the captive customers are forced to accept the prices set by the local providers.
[5] This makes withholding capacity to artificially create an electricity shortage rational, forcing introduction of price caps[5] by the regulation authority.
Therefore, some mechanism of compensation for the north's generator that does not depend on the market price is required.
RMR is a relatively long-term contract (a year or more) between an independent system operator (ISO) and the generator to produce electricity with a cost-plus pricing.
[4] In addition to the price caps and RMRs, the system operators deal with the load pocket problems through a combination of different approaches:[7] This electricity-related article is a stub.