> Because government regulation doesn't allow fixed power plants to charge a fixed yearly fee. If the government did allow this then the market would indeed pri

> Because government regulation doesn't allow fixed power plants to charge a fixed yearly fee. If the government did allow this then the market would indeed price everything correctly. In the US, in most markets (except ERCOT/TX), it's the opposite of what you say. Government regulation _requires_ either the market operator or load serving entity to contract for capacity (as opposed to energy). PJM, which operates the largest market in the US, runs an annual auction for capacity. Incredibly, due in part to subsidies offered to the natural gas industry, existing nuclear power plants have not cleared in the auction. [0, 1] [0] https://insidelines.pjm.com/pjm-successfully-clears-capacity-auction-to-ensure-reliable-electricity-supplies/ https://insidelines.pjm.com/pjm-successfully-clears-capacity... [1] https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/3-exelon-nuclear-plants-fail-to-clear-pjm-capacity-auction-64835071 https://www.spglobal.com/marketintelligence/en/news-insights...