Integrating reliability-must-run practices into wholesale electricity markets

One of the challenges of electric power market design comes in the need to consider the consequences of design choices for both market outcomes and grid reliability. Strictly speaking, the two kinds of consequences are not neatly separable, as market choices affect system reliability and system reliability affects market outcomes. The interaction between the two … More Integrating reliability-must-run practices into wholesale electricity markets

Continuing debate over the economic origins of electric utility regulation

State regulation of electric utilities began in earnest about 1907 and by around 1920 almost all states had begun state regulation. Prior to state regulation, most electric utilities were regulated through city-issued franchise agreements. Was state regulation of privately-owned electric utilities efficiency enhancing relative to the municipal franchise regulation of electric utilities that preceded it? … More Continuing debate over the economic origins of electric utility regulation

Compact fluorescent bulbs not living up to California program’s expectations

Michael Giberson The Wall Street Journal reports that a program to cut energy consumption by subsidizing consumer purchases of  compact fluorescent light bulbs is not working out as planned.  I think we can summarize this as: regulator approves cost recovery for subsidy program to reduce energy consumption, program doesn’t work as well as expected, so regulator approves … More Compact fluorescent bulbs not living up to California program’s expectations

Appliance sales to get ‘cash for clunkers’ boost? (2)

Michael Giberson In August we took note of stories indicating that appliance sales were going to get a “cash for clunkers”-like boost.  James Hamilton at Econbrowser offers updated discussion, links, and commentary: Here is the description of the program from the Energy Department (hat tip: King Banaian): In late 2009 or early 2010, you may … More Appliance sales to get ‘cash for clunkers’ boost? (2)

External costs of energy production, auditing the Energy Star program, and more

Michael Giberson NewsWatch:Energy puts together a pretty good list of energy links, today noting the National Research Council’s new “Hidden costs of energy: Unpriced consequences of energy production and use.” (Surprise: coal looks bad. But note that much of the harm arises from a small number of coal-fueled generators.  The rest of the coal-burners are … More External costs of energy production, auditing the Energy Star program, and more