Fortnightly Magazine - March 2008

Pay-as-Bid vs. Uniform Pricing

Discriminatory auctions promote strategic bidding and market manipulation.

Some advocates claim markets can help reduce electricity prices by changing the design of wholesale auctions. However, taking a pay-as-bid approach could make matters worse.

Transmission Rights Row

Fiber optic lines expose grid companies to class action lawsuits.

Property owners are banding together and filing class-action lawsuits against transmission owners who sell dark-fiber capacity on their rights of way. Utilities have strong arguments against demands for hefty compensation.

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