Practical aspects of electricity restructuring

Journal Article · Tue Oct 01 04:00:00 EDT 1996 · Electricity Journal

DOI:https://doi.org/10.1016/S1040-6190(96)80434-9· OSTI ID:486399

Dunn, Jr, W H; Rossi, M A

Restructuring in the U.S. will benefit from experience elsewhere, even if the starting points differ considerably. The challenge here will be to strike a balance between pure theory and a more practical path which could achieve nearly the same objectives. Restructuring. What does it really mean to the electric utility industry? The discussions started with RTGs, RTAs and RTCs. Then it was the Poolco vs Bilateral market debate and the formation of Gridcos. Now, there are ISOs, Power Exchanges, Direct Access, and full retail competition proposals. Regardless of the labels one chooses over time, there are fundamental issues that must be addressed in any restructuring effort, and for each issue there are numerous theories for approaching the problem. The intent of this paper is to share the authors experiences in implementing a variety of market and industry structures. Their aim is to review their interpretation of the prominent restructuring theories being considered and examine their underlying assumptions. From there, the authors explore how these theories have been implemented, and identify some of the issues encountered and some of the compromises required to develop workable solutions. The challenge is to strike a balance between attempting to adhere to the pure theory versus following a more practical path. To clarify their own perspective, the authors view {open_quotes}restructuring{close_quotes} to encompass both industry structure issues as well as the market structure issues. The success of any restructuring proposals, theories or designs requires these two areas to be synchronized from the policy level through to the detailed rules and codes of conduct that govern day-to-day operations.

• OSTI ID: 486399
• Journal Information: Electricity Journal, Journal Name: Electricity Journal Journal Issue: 8 Vol. 9; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPETITION
DEREGULATION
ELECTRIC POWER INDUSTRY