Creating a real electricity marketplace instead of chaos: How to make restructuring work

Conference · Tue Dec 31 04:00:00 EST 1996

OSTI ID:554959

Landgren, D A

Change is imminent in the electric power industry. The move toward greater competition began in earnest with the Energy Policy Act of 1992. Provisions of that law and the policy of the Federal Energy Regulatory Commission to provide transmission access and support competition in the wholesale electricity market have already had significant effects. Now, the industry is pursuing the overdue changes necessary to give the benefits of competition to retail customers as well. The change can be incremental, denying the benefits for an extended period of time and creating chaos because of uncertainty. Change also can be pushed hastily ahead without thinking through the consequences, again resulting in chaos. A preferable alternative is to move quickly but in a comprehensive and rational manner to create a real marketplace for electricity rather than a chaotic one that the other two approaches could produce. As part of a more global economy, the nation is adapting its economic and social structure to a new era of liberalized trade and intense worldwide competition. The ability of the nation`s industries to compete depends in part on the availability of low-cost and reliable energy. Markets rather than regulation can provide a more efficient means to that end. Evidence of competition`s benefits can be seen in the telecommunications, trucking, airlines and other industries that preceded the electricity industry toward markets and away from regulation. Evidence also can be seen in other nations, such as Norway and New Zealand, that already have introduced competition in the electric power industry. The forces now in motion to improve the United States` electric power industry will not be stopped. And there are no good reasons to try to stop a competitive industry from forming.

• OSTI ID: 554959
• Report Number(s): CONF-961232--
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
DEREGULATION
ELECTRIC POWER INDUSTRY
GOVERNMENT POLICIES
MARKET
POLLUTION