Many see a higher cap as a windfall for nuclear and coal.
Still Beyond the Pale?
With its membership opened, NEPOOL sets a transmission tariff, but still must develop competitive markets. In 1993, after a series of attempts going back as far as 1971, the New England Power Pool failed to reach agreement among its members for a regional transmission arrangement. But destiny then took over (em with help from the newly enacted Energy Policy Act (em to lead pool members back to the bargaining table. Finally, on Sept. 30, 1996, NEPOOL announced that its executive committee had agreed in principle on restructuring the pool.
Incumbent monopolists won't command high premiums
if newcomers can rebuild capacity from scratch at a cheaper price.
At first glance, many of the nation's regional markets for wholesale electric generation appear monopolistic. In some of the 18 regional power markets we have identified, the leading companies account for 75 to 90 percent of the area's generating assets. In other markets, where the concentration problem does not yet seem as pressing, mergers and acquisitions threaten to raise levels of concentration of ownership in generation.
By Robert J. Michaels
The Justice Department's Guidelines don't tell us very much about
today's (or tomorrow's) electric market.
However many electric utilities remain after this merger wave, competition will be forever changed.