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Title: The commoditization of electric power

Journal Article · · Fortnightly; (United States)
OSTI ID:7200252

Electric power is fast becoming a commodity-a unique commodity that is currently traded actively in the wholesale power market among electric companies and large industrial consumers, and inevitably will be offered competitively to retail customers. U.S. electric utilities are learning to face a world in which competition overshadows cooperation, open markets are replacing a regulated customer base, and the rate of return is increasingly driven by market forces, not the rulings of regulatory commissions. In this environment, some companies are positioned for success with strong financial portfolios, low-cost generation, and transmission resources. Others are burdened with high-cost investments, high-priced fuel and power contracts, and inadequate transmission options. Given the diversity of today's electric industry, the transition to open markets will not be smooth. But as the process unfolds, buyers and sellers alike will need information on the dynamics of the market. To this end, the FORTNIGHTLY and Resource Data International Inc. (RDI) of Boulder, CO, will provide statistical tables and narrative that track electric power markets on a monthly basis. The Market Indicators table provides three key statistics electric output, average production cost, and retail rates-for each North American Electric Reliability Council region. The Wholesale Market Watch table provides five key statistics-electric generation, retail sales, surplus/deficit energy (calculated), production cost, and retail rates-for 30 selected companies.

OSTI ID:
7200252
Journal Information:
Fortnightly; (United States), Vol. 132:8
Country of Publication:
United States
Language:
English

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