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

Abstract

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.

Authors:
Publication Date:
OSTI Identifier:
35421
Resource Type:
Journal Article
Journal Name:
Electricity Journal
Additional Journal Information:
Journal Volume: 7; Journal Issue: 3; Other Information: PBD: Apr 1994
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING AND POLICY; ELECTRIC POWER INDUSTRY; COMPETITION; MONOPOLIES; RESOURCE MANAGEMENT; EFFICIENCY; PLANNING

Citation Formats

Hempling, S. Depolarizing the debate: Can retail wheeling co-exist with integrated resource planning?. United States: N. p., 1994. Web. doi:10.1016/1040-6190(94)90070-1.
Hempling, S. Depolarizing the debate: Can retail wheeling co-exist with integrated resource planning?. United States. https://doi.org/10.1016/1040-6190(94)90070-1
Hempling, S. Fri . "Depolarizing the debate: Can retail wheeling co-exist with integrated resource planning?". United States. https://doi.org/10.1016/1040-6190(94)90070-1.
@article{osti_35421,
title = {Depolarizing the debate: Can retail wheeling co-exist with integrated resource planning?},
author = {Hempling, S},
abstractNote = {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.},
doi = {10.1016/1040-6190(94)90070-1},
url = {https://www.osti.gov/biblio/35421}, journal = {Electricity Journal},
number = 3,
volume = 7,
place = {United States},
year = {1994},
month = {4}
}