If the new rules of electric industry competition don't permit stranded-cost recovery, the credibility of the U.S. government would be seriously undermined. Or so an executive of one of the...
Moler and Donald F. Santa, Jr. of the FERC on one hand, and Woychick, Smutny-Jones, and MIT Economics Professor Paul Joskow on the other:
Santa: "What should [we] look at to determine whether a plant really is must-run?"
Smutny-Jones: "Use generic engineering criteria, not unit-specific."
Moler: "How do we minimize the chunk of must-run units?"
Woychik: "The definition ... is not a matter for regulation. It should be decided by the ISO."
Moler: "Does everyone else agree on that?"
Joskow: "Yes. Engineers have to look at the system and then mutter all sorts of things the rest of us don't understand."
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