Baby Steps Toward Market-based Retail Pricing

Demand response programs at utilities and ISOs are not full-on market-based retail pricing, but they at least serve as evidence that demand incentives interacting with supply incentives can discipline prices very effectively. This article on PJM’s demand response program illustrates how sharing the benefits of load shaping kept peak hour wholesale prices down in summer … More Baby Steps Toward Market-based Retail PricingMore Baby Steps Toward Market-based Retail Pricing

FERC’s Standard Market Design Proposal

Brian Mannix of the Mercatus Center and I have written a comment on the Federal Energy Regulatory Commission’s Standard Market Design proposal. The press release and the Reason policy study are available on the Reason Public Policy Institute website. From the press release: The Federal Energy Regulatory Commission’s Standard Market Design proposal is a bold … More FERC’s Standard Market Design Proposal

Living Off The Grid

And while you’re enjoying your glass of small-vineyard zinfandel that you have mail ordered from California, think about living disconnected from the electricity grid and having the quality of life to which you would like to become accustomed. This New York Times article provides some insight into living off the grid, which technology is now … More Living Off The GridMore Living Off The Grid

Victory for Liberty and Oenophiles!

According to this Declan McCullagh article from CNET.com, a New York state judge has ruled that the state’s ban on interstate shipment of alcoholic beverages is indeed a violation of the interstate commerce clause of the Constitution. Much of the success on this front in various states is due to liberty-loving oenophile and attorney Clint … More Victory for Liberty and Oenophiles!

The BBC And TV Regulation

According to British television regulators, the CNBC TV show “The Wall Street Journal Editorial Board With Stuart Varney” is a marketing device for the Wall Street Journal, and is therefore not shown in the UK. Apparently this is a thinly-veiled attempt to retain market power for the government-run BBC television programming. The editorial on this … More The BBC And TV RegulationMore The BBC And TV Regulation

Coda To The Puget Sound Energy Demand Management Program

On Wednesday PSE decided to terminate its residential demand management TOU program, according to this article. I am disappointed but not entirely surprised, as I think some poor strategic decisions were made in determining the residential focus of the program. Furthermore, halfway demand management approaches are more a creature of risk aversion than of courageous, … More Coda To The Puget Sound Energy Demand Management ProgramMore Coda To The Puget Sound Energy Demand Management Program

Oil Prices And The Alaska Pipeline

Okay, for those of you who think that drilling for oil in ANWR would make a huge difference in national security and world oil market power dynamics, notice that the pipeline has been down for two days because of an earthquake, BP’s Alaskan oil production is halted because of the earthquake (and they’re one of … More Oil Prices And The Alaska PipelineMore Oil Prices And The Alaska Pipeline

Guest Post On Puget Sound Energy’s Demand Management Program

I received the following thoughtful analysis from Mike Giberson, an independent energy industry analyst who has been working with energy regulatory policy issues for many years. Recently, Mike returned to graduate study in economics at George Mason University to study market design at the Interdisciplinary Center for Economic Science. The more I reread his points, … More Guest Post On Puget Sound Energy’s Demand Management ProgramMore Guest Post On Puget Sound Energy’s Demand Management Program

Puget Sound’s Retail Pricing Program

Market-based Retail Electricity Pricing: Puget Sound Energy’s Pilot Program In all markets prices serve a valuable role in enabling exchange, and in leading to efficient outcomes and investment. Prices transmit a great deal of information about the costs and preferences of widespread and disparate economic actors, and do so very parsimoniously. This truth holds for … More Puget Sound’s Retail Pricing ProgramMore Puget Sound’s Retail Pricing Program