Abstract
Electrical power market is going through fundamental changes. The baseload units, which are the backbone of reliable power supply, are not recovering enough revenue from sales to cover their operational and capital cost. This project will examine the dynamics of the power market and different components of the power market. In addition, we will look into the price drivers of the power market. Then, the power market background and historical trends will be examined to see how the power market redesign changes occurred. Also, upcoming fundamental changes to the market and how they affect the cash flow in the power market will be investigated. We will identify the underlying problem and propose possible solutions. Lastly, we will test possible solutions to see which ones fail and which ones pass.