Depolarizing the debate: Can retail wheeling co-exist with integrated resource planning?

Journal Article · Fri Apr 01 04:00:00 EST 1994 · Electricity Journal

DOI:https://doi.org/10.1016/1040-6190(94)90070-1· OSTI ID:35421

Hempling, S

Antagonists in the retail wheeling debate share a disgruntlement with the present industry structure and a desire to rely more on competition to achieve savings and efficiencies. But the critical question - is retail electric service a natural monopoly? - must be answered in the negative if retail competition is to be efficient. Only then should one go on to examine how such a regime might be structured. This article offers an approach to retail wheeling that is grounded in principles shared by both sides: economic efficiency, nondiscrimination and fairness to customers and shareholders. The article then turns to the source of both sides` disgruntlement: the industry`s illogical structure. This article discusses four principles: (1) Where retail electric service is a natural monopoly, unconditioned retail wheeling is inefficient; (2) Most arguments for unconditioned retail wheeling substitute a pecuniary interest for the public interest; (3) Efficient retail procurement within a natural retail monopoly must be consistent with an integrated resource plan; (4) As presently framed, the retail wheeling debate does not confront the electric industry`s structural flaws.

• OSTI ID: 35421
• Journal Information: Electricity Journal, Journal Name: Electricity Journal Journal Issue: 3 Vol. 7; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPETITION
EFFICIENCY
ELECTRIC POWER INDUSTRY
MONOPOLIES
PLANNING
RESOURCE MANAGEMENT