electric reliability
The Puzzle of Capacity Markets
What are capacity markets and why do they matter?
If you live in the Midwest, East of the Mississippi and North of the Mason-Dixon line, or in Arkansas or Louisiana, the companies that generate your electricity are covered by what are called capacity markets. I’ll bet you didn’t know that. That’s actually part of the problem, because there’s very little transparency and hence little …
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CONTINUE READINGThe Paradox of Electricity Deregulation
This is one setting where “deregulation” is a lot more complicated than regulation.
You might think that deregulation means sweeping away regulations, which ought to make the law much simpler. But the opposite is true in the electricity sphere. The regulatory system in states taking the traditional fixed-price approach is actually much easier to understand than the so-called deregulation method. Instead of saying “deregulation” it would be better …
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