Analysis of electric industry restructuring in key states and updated summary of state electric industry restructuring activities
There is a strong convergence of the principles for restructuring the electric industry in three states: California, Massachusetts, and New Hampshire. These states are all preparing orders for competitive generation markets based on independent transmission systems. Despite having a common vision for a restructured electric industry, their specific orders and plans differ somewhat. After reviewing the common features of the states` plans, this article will examine some remaining matters among their approaches. All three states call for customer choice as a way to bring market discipline and efficiency to electricity generation. Initial timetables for full implementation vary widely, up to ten years, in a series of phases. All states have visible uneconomic nuclear assets, whose costs are perceived, at least in New England, to be detrimental to the regional economic health. The centerpiece of each plan is an Independent System Operator (ISO) providing transmission services on a nondiscriminatory basis, consistent with the Federal Energy Regulatory Commission`s (FERC) Final Order 888, April 1996. The ISO is charged with both maintaining system reliability and enabling the operation of a Power Exchange (PE). In California, for instance, the PE not only provides the normal merchant clearinghouse functions of the ISO, it also is expected to develop a spot market for the generation of electricity in order to ensure overall system reliability.
- OSTI ID:
- 476829
- Journal Information:
- NRRI Quarterly Bulletin, Journal Name: NRRI Quarterly Bulletin Journal Issue: 4 Vol. 17; ISSN NQBUEK; ISSN 8756-632X
- Country of Publication:
- United States
- Language:
- English
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