How the FERC's RTO case has split the PUCs into five warring factions.
With momentum building for competition in retail energy markets, and with the real authority seeming to shift to...
the future? More construction, more demand growth, commodity cycles, and, on average, some spiking. That, of course, assumes the market will not be re-regulated to a major extent. It's a fair assumption; I believe cooler heads will prevail, even during the summer.
1 That has led to the following aphorism, which has a kernel of truth but also shows how markets can overcome problems: "Imagine every state having its own Federal Aviation Administration, the Securities and Exchange Commission being run by the industry on a voluntary basis, and the Food and Drug Administration saying it might be in charge, but it's not sure."
2 Rose, Judah, "Last Summer's 'Pure' Capacity Prices: A Harbinger of Things to Come," Public Utilities Fortnightly, Dec. 1, 1997, as well as Judah Rose and Charles Mann, "Unbundling the Electric Capacity Price in a Deregulated Commodity Market," Public Utilities Fortnightly, Dec. 1, 1995. "Analyst Sees Skyrocketing Peak Prices as Supply, Demand Approach a Balance," Power Markets Week, Jan. 26, 1998.
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