and Patrick Brown (MIT). Of course, any omissions or errors that remain are solely the responsibility of the authors. penetrations increase, but sometimes come at a cost to the consumer that is not always accounted for in generation portfolio decision-making. (see Chapters 2 and 5) All generation types are unique in some respect-bringing benefits and challenges to the power system-and wholesale markets, industry investments, and operational procedures have evolved over time to manage the characteristics of a changing generation fleet. With increased VRE penetrations, power system planners, operators, regulators, and policymakers will continue to be challenged to develop methods to smoothly and cost-effectively manage the reliable integration of these new and growing sources of electricity supply. Less-liquid bilateral markets exist outside of ISO/RTO regions. Note also that substantial amounts of generation even in ISO/RTO regions are locked-into longer-term physical or financial contracts, in which case available wholesale market prices signal opportunity costs but may not affect immediate revenue generation for those existing generators; wholesale pricing will, of course, still affect market entry decisions for new generation. 2 Where active wholesale markets do not exist, the same basic dynamics hold: the declining cost of natural gas, for example, puts economic pressure on inflexible units even in markets that do not feature an ISO/RTO.