Politics as Usual: A Roadmap to Backlash, Backtracking, and Re-regulation

Deck: 
Utility reform gone wrong-tales from FERC, Florida, Wisconsin, and California.
Fortnightly Magazine - October 1 2000
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1 Worse, new institutions such as the California ISO seem to believe falsely that their actions will not have serious spillover effects outside their immediate jurisdictional concerns. Electric utilities in neighboring states know that they indeed are affected by Cal-ISO pricing policy and terms of service.

2 .

3 While emphasizing that it intended to be flexible in reviewing congestion pricing proposals, the commission reemphasized that "markets that are based on locational marginal pricing and financial rights for transmission provide a sound framework for efficient congestion management" . Again, reemphasizing its comments in the NOPR, the FERC stated that congestion pricing proposals should "ensure that the generators that are dispatched in the presence of transmission constraints must be those that can serve system loads at least cost, and limited transmission capacity should be used by market participants that value that use most highly" .

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