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Perspective

Solving the industry's problems will require cooperation between the federal government and states.
Fortnightly Magazine - January 1 2003

price volatility.

Federal regulators should not and cannot micromanage how regional electricity markets evolve. For example, the South can retain its vertically integrated utilities, and the extensive hydropower system in the West can continue to operate without operational changes.

Optimal markets rely on state leadership within each region to ensure adequate power supplies and build new power lines while appropriately allocating the costs of expanding the grid.

Making markets work can mean more than just lower costs for customers. Eliminating barriers to competition will pave the way for new power technologies that are cleaner and better for the environment, providing unquantifiable public health benefits.

But state and federal regulators cannot and should not address the development of competition in the electric industry separately. We can and we must work together to resolve these issues. Our nation's economic future depends on it.


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