From KMUW :
“It doesn’t matter to the regulated utilities,” said Travis Kavulla, director of energy policy at the R Street Institute, a think tank that favors free markets and limited government. “Because whatever they pay in fuel … gets recovered from their customers, dollar for dollar.”
Kavulla, who used to be a state regulator in Montana before joining R Street, said regulators could help the problem by making sure utilities have some skin in the game .
Until regulators make changes, Kavulla expects coal power plant owners such as Westar will likely continue to self-commit their resources and enter into long-term coal purchasing agreements.
“After all,” he said. “If I’m a Utility Chief Financial Officer, why would I spend a lot of my time trying to drive the best deal on a fuel supply contract if it’s fundamentally not going to make me any profit?”
- “KMUW”: https://www.kmuw.org/post/report-kansas-utilities-run-coal-plants-year-round-even-though-it-costs-ratepayers-millions
- “making sure utilities have some skin in the game”: https://www.rstreet.org/2019/06/12/reviewed-work-the-billion-dollar-coal-bailout-nobody-is-talking-about-self-committing-in-power-markets/