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An Unacceptable Outcome

Mixed signals leave developers wary of building new infrastructure.

Fortnightly Magazine - November 2006

Department of Energy, sees it another way. He said that if New England is to grow, it must overcome its resistance to infrastructure development.

Two transmission developers have said they could work within either competitive or regulatory model, as long as the rules are consistent. “Variability is the enemy of capital formation,” said one transmission investor. He observed that the proposed Frontier transmission line in the West already has suffered from variability. Investors abhor the change in project economics after regulators in California insisted that energy transmitted on the line had to come from sources with extremely low greenhouse-gas emissions.

Prolonging the inevitable discussion on the best market model could delay progress on energy market development and further infrastructure investment—and could continue to torture Kelliher’s soul.