Wholesale Market Policy Changes to Provider-of-Last-Resort (POLR) Program Design

Analysis Group examined the linkages between wholesale and retail markets in order to develop recommendations for key policy changes to state provider-of-last-resort (POLR) program designs, as well as potential changes to wholesale market rules. The goal of the work was to improve the linkages between wholesale and retail markets, particularly the connection between retail POLR rates and the costs of underlying transactions occurring in the wholesale market. The work entailed undertaking a comprehensive qualitative review of standard offer and default service program design features, and a full quantitative analysis of the impact of regional wholesale prices, procurement design, and timing on the price results of standard offer/default service solicitations.