Jacob Williams, VP Generation Development, Peabody Energy: While transmission built to “compete” with generation capacity is an interesting notion, it generally misses the real value of...
Letters To The Editor
decisions. Such arbitrary artifices may have been proposed to help justify the rush to deregulation, but they are inconsistent with meeting the goal of power-cost minimization at an acceptable level of reliability. Further, exogenous subsidies or preferences for some load-serving resources should be eliminated if feasible. In addition, utilities should competitively procure more of their new resources (DSM, generation, and transmission), whether obtained via financial contracts or physical plant. In-house sourcing should be used only if it is indeed the lowest-cost way to proceed in a timely manner.
Finally, in light of the importance our society places on reliability, and the greater cost of outages, some of the measures of acceptable reliability criteria should be revisited, and new standards implemented if appropriate. A concerted effort pursuing all of these essential goals is necessary to enable our electric power systems to truly fulfill the promise of deregulation and competition.
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