Comment by bluGill

> The ability to purchase contracts on power that hasn't been generated yet is what is driving all the volatility and exploitation.

That is completely opposite of the truth. The ability to buy a contract is what allows power generators to get loans to build at good rates. Everyone wants someone else to take on the risk, when you buy a contract for power at some rate in the future you are taking on the risk that prices could go down. The generator then goes to the bank and can show that even if competition forces prices down they still are going to get that much from the contract and thus can pay off the loans.

Power is complex and I just touched the surface of the truth.