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Monopolists in Our Midst

What happens when economists and state regulators give up on electric restructuring?

Fortnightly Magazine - February 2005

principles can help inform the ongoing debate over the future of competitive power markets,” said Wayne Brunetti, EEI’s chairman and also chairman and CEO of Minneapolis-based Xcel Energy.

“Wholesale markets offer substantial benefits to customers. The benefits of robust wholesale competition can be achieved only if a strong, effective state-federal working relationship is established on all regulatory matters that provide the stability and certainty needed to attract investment.”

EEI believes competitive market rules “should not favor one corporate structure, business model, or retail regulatory model over another. Many different structures and business models can coexist in a competitive wholesale marketplace provided there are fair rules in place for all market participants.”

No one will argue that development of fair rules has not been the biggest challenge of all. Finding equity in energy markets is what an equitable conclusion to electric restructuring will depend on—whether it is a regulated or unregulated solution.