Proper authority and market monitoring and mitigation could make the system work.
In the last few years we have watched...
- restructuring that has occurred in the industry so far places increasing reliance on competitive wholesale markets to discipline prices, and thus places increasing importance on the wisdom of this Commission's market analysis."
- PJM, NY and NE, California, and the remainder of the Western Interconnection that was was affected by the events in California.
- For example, 10, 500 MW of capacity are slated to come online in New England this year and 5,300 MW in 2002. 2,600 MW are expected to go into service in PJM this year and another 3,800 MW in 2002. The California Energy Commission reports 11,303 MW of approved projects, another 6,465 MW pending in the review process, another 11,236 MW of announced projects and finally 17,836 MW of planned projects. Another 6,000 MW are slated to come on line next year in the Western Interconnection.
- , Foster Electric Report, September 9, 1998, at 1. (Dr. Mark Frankena, a principal at Economists Incorporated, has suggested that FERC should drop the current "Delivered Price Test" analytic method. That method requires separate market concentration studies for each target destination market of the merging companies and focuses all physically and economically available generation supply on those markets to determine each company's market share. Frankena argues that FERC's method is outdated and leads to inaccurate results.)
- Walter Surratt, , Electricity J., v. 11, no. 6, July 1998; see also [Any cite for this point of viewThe Honorable Richard D. Cudahy, The FERC's Policy on Electric Mergers: Abit of Perspective, 18 Energy L. J. 113, 118 (1997).
- , Electricity Consumers Resource Council, June 2001, at 13-14.
- , Electricity Consumers Resource Council, June 2001, at 10-12.
- James Sterngold, , New York Times, July 4, 2001, at A8; see also John G. Edwards, Nevada Regulators Ask Federal Officials to Revisit Wholesale-Power Price Caps, Las Vegas Review-Journal, July 19, 2001.
- This need also highlights that FERC lacks some essential tools in the area of transmission siting-a key area for promoting competition and maintaining reliability. Transmission siting marks perhaps one of the two most important initiatives that the Congress could take in electricity policy-the other would be to encourage greater demand response to market pricing as a federal priority.
- It is unclear what Chairman Wood meant at the July meeting by his reference to exchanges, but if the sentiment is that MBRs should be tied to participation in a centralized power exchange, there are significant policy issues that first must be resolved.
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