Electricity transition to be [open quote]difficult, painful, complicated and unpredictable[close quote]-Pierce
The electric industry likely will follow the same basic steps in moving from regulation to competition that were taken by the gas industry in the 1980s. However, the transition will be more difficult due to four reasons: jurisdictional issues, transition costs, transmission differences, and structural disparities. In the case of the gas industry, FERC largely controlled the pace and scope of change, but FERC lacks the regulatory tools to accomplish this in the electric industry. Specifically, FERC lacks the authority to order the construction or expansion of power transmission lines. The industry's vertical integration will also complicate the transition to competitiveness, especially with regard to retail wheeling, which will play a significant role in the transition, but will continue to provoke opposition.
- OSTI ID:
- 6989529
- Journal Information:
- Energy Daily; (United States), Vol. 22:96; ISSN 0364-5274
- Country of Publication:
- United States
- Language:
- English
Similar Records
Restructuring the electric industry
Comments of the FERC`s open access nondicriminatory transmission and stranded costs NOPR