Electric power's new competitive marketplace
- Fitch Investors Service, Inc., New York, NY (United States)
Currently, competition is limited primarily to power generation, the sale of wholesale bulk power, and fuel substitution at the point of end use. However, within the next several years, the rivalry will focus on large, energy-intensive industrial and large commercial customers. Driven by the disparity in rates among neighboring and regional utilities, large users are expected to lobby aggressively for retail wheeling and access to new supplies. New competitors will provide customers with additional supply options, forcing traditional utilities to offer better prices and or service. Competition at the point of end use also will increase as the natural gas industry develops new end-use technologies, gas utilities compete more aggressively, and some state regulatory commissions promote fuel switching as part of integrated resource planning (IRP) and demand-side management (DSM). However, as long as electric utilities are subject to cost-based rate of return regulation within price-sensitive markets, they will be a competitive disadvantage. The paper discusses the following: competitive risks by market segment, wholesale markets, industrial markets, commercial markets, residential markets, and franchise markets.
- OSTI ID:
- 5588784
- Journal Information:
- Cogeneration Journal; (United States), Vol. 8:4; ISSN 0883-5985
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
ELECTRIC POWER INDUSTRY
COMPETITION
COMMERCIAL SECTOR
FUEL SUBSTITUTION
GAS UTILITIES
INDUSTRY
LOAD MANAGEMENT
MARKET
NATURAL GAS
POWER GENERATION
POWER TRANSMISSION
PRICES
RESIDENTIAL SECTOR
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
MANAGEMENT
PUBLIC UTILITIES
200600* - Fossil-Fueled Power Plants- Economic
Industrial
& Business Aspects- (1990-)
296000 - Energy Planning & Policy- Electric Power