OPEC is having an emergency meeting Sunday to discuss the extent to which they should raise output. Furthermore, their proposed increase of up to 1.5 million barrels/day is a large increase for them, and drove down crude oil futures prices. Some news reports have argued that this is a dramatic policy shift for OPEC, but …
Many thanks to Robert Musil for posting a link to this paper by Susan Pope on electricity price spikes and California. I’ve not looked over it in much detail, as I’m blogging from a Kinko’s and in between sessions at the AEA, but it looks clear, wonderful, and correct. So Davis et al are deeply …
FERC Judge Finds for California Refunds, But Recognizes State?s Role in Creating Market Power On Thursday 12 November, Federal Energy Regulatory Commission administrative law judge Bruce Birchman proposed refunds that electricity suppliers should offer in redress of allegedly excessive wholesale power prices in 2000 and 2001. This decision should resolve some of the regulatory uncertainty …
On Tuesday an op-ed I wrote about the value to getting over the California crisis and pursuing some standardized market rules ran in the Orange County Register; the text of it is here. While I do not support the approach FERC is following in its current proposal, as Brian Mannix and I argued in our …
According to this article, American Superconductor has achieved an important milestone in producing transmission wires from high temperature superconductor material: “American Superconductor Corporation announced it has achieved reproducible results in electrical performance over 10-meter lengths of its second generation, coated conductor composite, high temperature superconductor (HTS) wires that are significantly ahead of the goals set …
Electricity Transmission And Rates Of Technological Diffusion Read More »
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 …
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, …
Coda To The Puget Sound Energy Demand Management Program Read More »
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, …
Guest Post On Puget Sound Energy’s Demand Management Program Read More »
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 …
According to John Fund’s Political Diary on Opinionjournal.com today, California Governor Gray Davis showed his temper in a most appalling and embarrassing way on Friday 18 October. His outburst was prompted by a professor’s attempt to initiate a conversation about an editorial about electricity pricing in California written two days earlier by Vernon Smith, recent …
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