POOLCO: An independent Power Pool Company for an efficient power market
- Univ. of California, Los Angeles, CA (United States)
- McKenna & Co., London (United Kingdom)
Developing the institutions needed to serve as foundation for a competitive power market, while also permitting a smooth transition to direct access, will be worthwhile, as it will permit the industry to proceed with a sounder structure under which all consumers can benefit. Rushing into direct access without a proper foundation will lead to a market in which only some benefit. As conceived, POOLCO will be a utility-independent, privately owned business that will act as the intermediary between all power users and sellers in the region. Its basic function will be the constant monitoring of the regions`s electricity needs and dispatching generation and transmission to achieve the lowest possible operating costs. While POOLCO will control the dispatch of the generation and transmission facilities of utility participants, it will own no `utility` capital assets. Separation of asset ownership from dispatch control eliminates the operational concerns relating to self dealing. POOLCO is not a competitor. Rather, POOLCO has one overarching mission: facilitating delivery of low-cost, reliable electricity to all customers. All POOLCO income to sustain its operations is derived from fees paid by power users and providers. Incentives will be built into this fee structure to encourage POOLCO to minimize operating costs. POOLCO will be a central clearinghouse for buying and selling electricity, and for providing transmission service. Power generators, whether utility-owned or independent power producers, will be assessed a fee for the right to connect and deliver power to POOLCO. Similarly, utility and direct access retail electricity buyers will be assessed a fee for the right to connect and receive power from POOLCO. POOLCO will therefore, link sellers of electricity to buyers via a region-wide transmission network.
- OSTI ID:
- 35600
- Journal Information:
- Electricity Journal, Journal Name: Electricity Journal Journal Issue: 7 Vol. 7; ISSN ELEJE4; ISSN 1040-6190
- Country of Publication:
- United States
- Language:
- English
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