  US transmission systems and wholesale electricity markets, albeit federally
regulated, often span across multiple state jurisdictions. In this environment,
state regulators can strategically exploit this techno-economic coupling to
advance their clean energy policy goals at the expense of neighboring
jurisdictions. This paper investigates strategic regulatory competition to
understand its effect on achieving Renewable Portfolio Standards (RPS). We
formulate a chance-constrained equilibrium problem with equilibrium constraints
(CC-EPEC), which considers multiple state regulators, acting in coordination
with in-state power companies, to implement RPS goals in the least-cost manner.
To solve this CC-EPEC, we customize a Progressive Hedging (PH) algorithm. The
case study uses the CCEPEC and PH algorithm to analyze the effects of state
regulatory competition in the ISO New England system.
