Michael Giberson
According to a new paper by Jim Bushnell, Ben Hobbs and Frank Wolak, “the desire of [state] legislatures and state PUCs to protect consumers from wholesale price volatility comes at a cost we believe few consumers would be willing to pay if it were made explicit, higher annual electricity bills.”
And it isn’t just state politicians that come under criticism, the paper is titled, “When it comes to demand response, is FERC its own worst enemy?” The authors say yes.
(And in related news, Bushnell now holds the Cargill chair in energy economics at Iowa State University.)