Wholesale Electricity

Enhancing market signals for electric resource adequacy

Reliable electric service has major benefits for society. But there are also costs, as reliability depends upon having sufficient aggregate supply to meet demand, or generation “resource adequacy,” …

Congress must oppose intervention in the energy market

Fear is the great foe of liberty. Nothing drives fear deeper into energy policymakers’ hearts than predicting blackouts. Owners of unprofitable power plants sometimes seize on this fear to …

Greentech Media Podcast: Beyond Subsidies

R Street senior fellow Devin Hartman and EDF’s Lenae Shirley discussed on Greentech Media’s The Interchange podcast how competitive electricity markets align the conservative and green agendas. The …

Testimony on Embracing Electricity Markets in Ohio

Testimony of Devin C. Hartman—Electricity Policy Manager and Senior Fellow, R Street Institute   To the Public Utilities Committee Ohio House of Representatives Hearing on House Bill No. 247 Embracing Electricity Markets and …

Don’t short circuit the Ohio electricity market

The attached policy study is co-authored by Joe Nichols, strategic partnerships officer at The Buckeye Institute. The Ohio economy depends on an affordable and reliable supply of electricity. Electricity …

(Don’t) Fight The Power: How electricity competition excels in the Midwest

WASHINGTON (Oct. 19, 2017) – The experience of Midwest states that have restructured their electricity markets demonstrates convincingly that the profound advantages of competitive markets and consumer choice …

Electricity competition excels in the Midwest

Beginning in the 1990s, 13 states and the District of Columbia restructured their electricity systems. This has facilitated competitive wholesale markets and enabled retail customers to choose their …

Why is Rick Perry’s Energy Department proposing an anti-conservative reform?

Let's be clear: The Energy Department's proposed rulemaking before the Federal Energy Regulatory Commission to subsidize power plants with on-site fuel is the antithesis of economic conservatism. The anti-competitive DOE …

Electric Boogie: Integrating reliability-must-run practices into wholesale electricity markets

Reliability is an essential feature of wholesale power markets. Unfortunately, the experience that independent system operators and regional transmission organizations have had with reliability-must-run (RMR) agreements is that …

Integrating reliability-must-run practices into wholesale electricity markets

In grid-integrated wholesale power markets operated by independent system operators and regional transmission organizations (simply referred to here as ISOs), the reliability of the bulk power system is …

Perry questions value of ‘free market’ in energy

Shakespeare’s adage about those who "doth protest too much" seems an appropriate response to Energy Secretary Rick Perry's recent testimony on an administration proposal to change the way …

R Street study finds stakeholder governance hasn’t kept pace with changing electricity markets

WASHINGTON (Oct. 5, 2017) – The rise of renewable resources and the introduction of virtual trading have caused tremendous changes in wholesale electricity markets in recent years. Yet …

How the RTO stakeholder process affects market efficiency

The attached policy study was co-authored by Kevin B. Jones, professor and director at Vermont Law School's Institute for Energy and the Environment, as well as Ashleigh H. Krick …

Rep. Tonko cites R Street’s energy research

Rep. Paul Tonko, D-N.Y., cites R Street research on electric reliability at an Oct. 3, 2017 hearing of the U.S. House Committee on Energy and Commerce's Energy Subcommittee. …

Prescribing on-site fuel storage is an unreasonable approach to grid resiliency

The U.S. Energy Department’s proposed rulemaking to the Federal Energy Regulatory Commission (FERC) is, at best, a myopic and inefficient approach to grid resiliency. The proposal prescribes one measure, among …

DOE proposal misframes grid resiliency  

U.S. Energy Secretary Rick Perry directed the Federal Energy Regulatory Commission (FERC) Friday to issue a rule to provide immediate cost recovery for power plants with extended on-site …

Ohio needs unimpeded energy markets

More and more, key players in the coal industry have had their hands outstretched in search of government support. At the federal level, they are asking for production …

DOE grid study shows how regulatory state disadvantages hydro, nuclear

The U.S. Energy Department’s recently issued study of the electric grid quickly is gaining notice as perhaps the most well-reasoned domestic policy document to come out of the …

DOE study proves regulation puts hydro, nuclear power at a disadvantage

The U.S. Energy Department's recently issued study of the electric grid quickly is gaining notice as perhaps the most well-reasoned domestic policy document to come out of the …

DOE grid study will shift and accelerate energy regulatory initiatives

The grid reliability study issued last week by the U.S. Energy Department is likely to shape the Trump administration's regulatory agenda in significant ways, offering some portent of things to …

Refreshing price formation policy in wholesale electricity markets

In less than two decades, the rise and proliferation of organized wholesale electricity markets has resulted in more efficient and reliable operations and investment in the bulk transmission …

More transparency and less prescriptive rules will help electricity markets thrive

WASHINGTON (Aug. 31, 2017) – States that have chosen to scrap the monopoly utility model for competitive electricity markets have seen more efficient and reliable electricity and greater …

DOE study provides insight, despite controversy

The U.S. Energy Department's much-discussed grid study, released this week amid a swirl of pre-publication controversy, offers a thoughtful and empirically based approach to examining current and future …

Schumpeter keeps the lights on

The debate over America’s electric power mix has exposed that some partisans have a near-theological devotion to particular fuels. Opinions on retiring coal and nuclear plants and prospects …

The Market Advantage: A Q&A with Joe Bowring

The PJM Interconnection is a regional transmission organization that administers competitive wholesale electricity markets. Monitoring Analytics, PJM's independent market monitor, evaluates PJM's markets and monitors the behavior of …

R Street initial post-technical conference comments to FERC

The R Street Institute (RSI) hereby submits comments on the critical matter of state policies affecting ISO-NE, NYISO and PJM. The Federal Energy Regulatory Commission (the “Commission” or …

Baseload retirements don’t have to mean less reliable electricity

WASHINGTON (May 30, 2017) – A wave of coal and potential nuclear retirements has prompted extensive political controversy over the future of “baseload” power plants and the effects …

Embracing baseload power retirements

A wave of coal and potential nuclear retirements has prompted extensive political controversy over the future of "baseload" power plants and the effects such retirements could have on …

In reshaping U.S. energy policy, Perry’s best model is his home state

The Federal Energy Regulatory Commission (FERC) held a high-stakes conference May 1 and 2 to address the contentious interplay of state policies and interstate wholesale-electricity markets. The week …

Why risk and reliability matter more than fuel diversity

Policymakers often presume that diversity in electricity supply is inherently beneficial, even a necessity. This presumption manifests in industry catchphrases, campaign slogans, government policy objectives and beyond. It …

Conservatives need an energy vision

For conservatives seeking a major victory, a great place to start would be to fix the mess of energy subsidies and regulations that have accumulated over the past …

Westinghouse bankruptcy epitomizes failures of electricity monopolies

Westinghouse Electric Co. LLC—the nuclear power company that traces its lineage to the original Westinghouse Electric Corp., founded in 1886—has been forced to declare Chapter 11 bankruptcy, largely …

R Street comments to FERC on uplift costs

Pursuant to the Federal Energy Regulatory Commission’s Notice of Proposed Rulemaking issued Jan. 19, 2017, the R Street Institute respectfully submits these comments in response to the commission’s …

So-called ‘consumer protection’ bill is actually protecting the utilities

Think you are capable of managing your own affairs? The government might not see it that way. Over the past few decades, a growing field of scholarly thought …

Comments on FERC’s notice of proposed rulemaking on the pricing of fast-start resources

Pursuant to the Federal Energy Regulatory Commission’s (the “Commission” or “FERC”) Notice of Proposed Rulemaking (“NOPR”) issued on December 15, 2016,[1] the R Street Institute (“RSI”) respectfully submits …

New York’s nuclear subsidies contradict economic principles

When New York State's massive zero-emission credits (ZECs) program kicks off in April, it will begin a 12-year process of unloading $7 billion in subsidies on unprofitable nuclear …

Fixing the power grid through open markets and new technologies

The following op-ed was co-authored by Graham Richard, CEO of Advanced Energy Economy, a national business organization. The electric power system makes our modern, mobile, information-age economy possible. But it …

Where’s Minnesota’s electricity choice?

Minnesota Republicans are missing a critical opportunity to practice what they preach. Competition and consumer choice are good for the Gopher State. The phone you use, car you drive, …

Is lack of competition leading to costly electricity glut?

A top California utility official once quipped that he was one of the few executives in the country who earned a profit merely by remodeling his office. He …

Disciplined policy responses to nuclear retirements

A combination of market, policy and regulatory factors have converged to squeeze the finances of the U.S. nuclear generation fleet. Among a variety of organic and external factors, …

FERC chair’s departure spells policy uncertainty and infrastructure delays

In his first week in office, President Donald Trump elevated Commissioner Cheryl LaFleur to serve as acting chairman of the Federal Energy Regulatory Commission. This action removed that …

Environmental benefits of electricity policy reform

The structure of the electric industry can help shape environmental outcomes. In the United States, we have significant experience with the regulated monopoly model, which dates back to …

What Joe Maddon can teach Illinois lawmakers about competition

Illinois policymakers are considering a sprawling, damaging and wasteful energy bill that seeks to bail out two unprofitable Exelon Corp. nuclear plants. This massive 446-page piece of legislation—dubbed …

R Street’s priorities for the next administration

The incoming Trump administration will inherit numerous challenges that must be dealt with in year one, such as overwhelming shortfalls in the Pension Benefit Guaranty Corp. and debt …

Ohio’s fight to preserve energy competition and choice

Ohio regulators recently approved a problematic, watered-down subsidy for investor-owned utility FirstEnergy Corp. amounts to corporate welfare to protect captive ratepayers of its monopoly utility segment from the …

Avoiding backdoor bailouts on the Texas grid

Texas is blessed to have a competitive market for electrical generation. Unlike most states, Texas’ electric-power mix is not decided by bureaucrats who guarantee that utilities can recover …

Utility regulators must protect average electricity customers and competition

The following op-ed was co-authored by Dick Munson, director of Midwest clean energy for the Environmental Defense Fund. Ohio's utility regulators may have been appointed by a conservative governor, who …

Avoiding the renewables blame game – lessons from down under

News that wind energy may have played a role in an electrical blackout experienced last week in South Australia has reinvigorated the question of whether renewable-energy mandates decrease …

Wholesale electricity markets in the technological age

The U.S. power industry, a major underpinning of the national economy, has experienced significant regulatory and market transitions over its long history. The unique nature of electricity provision …

Types of organized electricity markets

Regional transmission organizations and independent system operators (RTO/ISOs) deliver reliable electricity through organized competitive markets. These markets reduce the costs to operate the grid and send long-term investment …

Traditionally regulated vs. competitive wholesale markets

In the 1990s and 2000s, U.S. states chose either to restructure their wholesale electricity markets fully or partially, or to retain regulation of vertically integrated monopoly utilities.[i] Generally, …

Federal Power Act and organized electricity markets

Organized electricity markets that allow competition have evolved considerably since their inception in the late 1990s. A host of policy, market and technological developments have altered their outcomes …

Generation Gap: The age of nuclear retirement

The following op-ed was co-authored by R Street Energy Policy Director Catrina Rorke.  At a meeting of the National Association of Science Writers in New York in 1954, the …

State subsidies and competitive wholesale electricity markets

On June 10, 2016, Rep. Fred Upton, R-Mich., Chairman of the House Energy and Commerce Committee and Rep. Ed Whitfield, R-Ky., Energy and Power Subcommittee Chairman, sent a …

Let my Nevadans go

More than 3,000 years later, another desert exodus is upon us. Customers yearn to break free from NV Energy, the sole electricity provider in most of Nevada. Escaping …

When it comes to solar, average isn’t everything

This summer, the U.S. Department of Energy’s SunShot Initiative will reach its halfway point. Established in 2011 as a ten-year project, the program aims to make solar "fully …

Clean Power Plan isn’t only EPA rule endangering electric reliability

Back in February, the U.S. Supreme Court stayed implementation of the Environmental Protection Agency’s Clean Power Plan (CPP) pending resolution of various legal challenges against the rule. The …

SCOTUS protects electricity competition, strikes down Maryland subsidies

Tuesday’s unanimous decision by the U.S. Supreme Court invalidating Maryland's subsidy program to encourage building new power generation marks a welcome defense of the principles of competition in electricity …

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