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 attempt to simplify the regulation of electricity markets but risks locking the electricity industry into a regulatory structure that ignores technological advances and is unable to adapt to changing market conditions, according to a new report. The study, released by Reason Foundation, a Los Angeles-based think tank, finds that the best way for FERC to monitor electricity markets, discipline suppliers, and provide optimal investment motivation is to allow demand-side and supply-side incentives to interact.