But does anyone know the real price of power?
You've read the headlines from Maine - how regulators asked for bids for competitive electricity but got prices higher than the old regulated rate.
But it gets worse. The more open the market, the higher the bid.
Central Maine Power and Bangor Hydro-Electric operate within ISO New England, which now is open for competition.
IN A RECENT SPEECH TO A SOPHISTICATED WASHINGTON AUDIence of electric industry players, FERC Commissioner William Massey raised a difficult question: "Can ISOs become self-policing institutions, thereby allowing FERC to embrace light-handed regulation of transmission?"
In answering his own question, Massey confirmed a quasi-judicial role for independent system operators (em but only if they are "equipped with proper operational rules, including market monitoring plans that report market power abuses and contemplate enforcement mechanisms to assure compliance." %n1%n
Despite such op
ELECTRIC RETAIL PRICES. The Energy Information Administration has released a new report finding that the average retail price of electricity has declined for the third year in a row and remained stable for the first nine months of 1997. According to Electric Sales and Revenue 1996, average residential electric prices declined slightly in 1996, the first drop for that consumer class since the EIA began collecting data in 1984.
A Clean Divorce? Splitting the NY Power Pool ISO Toes the Line, but new Reliability Council Raises Brows
DOES IT MATTER THAT NEW YORK'S PROPOSED RELIAbility Council won't be truly independent, even though its distinctly separate independent system operator now plans to require pristine board membership?
Both organizations begin operating as early as July. On paper, any conflict between market needs (i.e. generation) and reliability issues (largely transmission and distribution) will head to the state public service commission or FERC. But reality may force that hand in the effort to restructure New York's wholesale market.
BY THE START OF 1998, FOUR INDEPENDENT SYSTEM operators already were in operation and conditionally approved: ISO-NE, PJM and California by the FERC and Texas by the state PUC. Three more were either pending before the Federal Energy Regulatory Commission or expected to be filed in the coming months (New York, Midwest and IndeGO in the Northwest). Three additional efforts to develop ISO proposals were under way (DesertSTAR, MAPP and SPP). The Southeast is now the only large region of the contiguous United States without an ISO concept.
Can NERC Juggle All Three En Route to Open Access?
At the year's start, the North American Electric Reliability Council decided to leave its "peer pressure" policy behind and require mandatory compliance with its reliability standards. As NERC grapples with its new policy, Public Utilities Fortnightly asked eight industry representatives how they might ensure reliability in a restructured electric industry.
It had taken time for NERC to arrive at this point, but itÆs official: Mandatory sanctions and business incentives will soon be used to enforce compliance.