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Is Bigger Better? Market Power in Bulk-Power Supply: From FDR to NoPR

Fortnightly Magazine - February 15 1996

495, 534 (1948).

8. U.S. v. Aluminum Co. of America, 148 F.2d 416, 427 (2d Cir.1945). This opinion has the binding effect of the Supreme Court. Judge Hand was designated in a special Act of Congress to hear the case, which was to have gone to the Supreme Court but could not because too many of the Justices had recused themselves and the high court could not assemble a quorum.

9. There is some opinion that small fluidized-bed units can serve as based-load units, but the near bankruptcy of a small utility in Texas trying to get its fluidizedbed unit to operate properly suggests to others that the technology may not be mature.

10. Evidence of unit sizes in this early period is hard to come by. I have recently seen one source suggesting that the Brookland Edison Co. had installed 200-Mva General Electric units as early as 1934. See, Dawes, Electrical Engineering, vol. II, McGraw-Hill, New York (1934), p. 2, footnote 1.

11. See, Gainesville Utils. Dept. v. FPC, 402 U.S. 515 (1971).

12. Consumer Power Co., Midland Units 1 & 2, 6 NRC 892 (1977).

13. 67 FERC (pp 61,183, May 13, 1994. The FERC did, however, make an exception to the case where barriers to entry could be shown. Below we show such barriers to entry into the RQ market.

14. See, Midwest Power Systems, Inc., 71 FERC (pp 61,386, June 22, 1995 (Massey and Hoecker concurring), describing the FERC's current "public interest" standard for mergers, as set out back in 1996 in Commonwealth Edison Co., 36 FPC 927, Aff'd sub nom. Utility Users League v. FPC, 394 F.2d 16 (7th Cir.), cert. denied, 393 U.S. 953 (1968).

15. See, II Areeda & Turner, (sc 406.

16. Id., at (sc 408.

17. Docket No. EC92-21, ER92-806, 62 FERC (pp 61,073. (In this case the author represented the Louisiana Energy & Power Authority, an opponent of merger between GSU and Entergy).

18. 62 FERC (pp 61,073 at 61,370.

19. Since there was no open access in those days, integration required direct connection of all the generation and load properties by transmission controlled by their owner. Only in this way could be owner of the properties be assured that he could achieve scale economies available because of the relationship of unit size, combined system size, reserves, and reliability.

20. Pacific Power & Light v. FPC, 111 F.2d 1014 (9th Cir.1940).

21. Dkt. Nos. EC94-23-000, ER95-808-000, Nov. 29, 1995, draft order at 12.

22. Sometimes two or more bulk-power suppliers will share the use of a control center to maintain a common control area.

23. Florida Power & Light Co., Opin. No. 57, 8 FERC (pp 61,454 (1979).

24. There a host of different types of power in this market. These are not interchangeable inter se, but are normally sold together as schedules of an interchange agreement and therefore the combination reflects commercial realities. Market analysts usually classify this type of market as a "cluster market." See, e.g. U.S. v. Philadelphia National Bank, 374 U.S. 321, 356 (1963); U.s. v. Grinell Corp.,