β Scribed by James Bushnell
No coin nor oath required. For personal study only.
The factors most often cited as the causes of the California crisis are the scarcity of generation capacity, a flawed market design, and the venality of electricity producers. However, many of these attributes were present in other electricity markets, none of which have suffered through anything like the California crisis. The only factor not seen in other markets in the world is the lack of contracts or other forms of long-term supply arrangements. Policy efforts are therefore best directed at developing a regulatory and retail environment where contracts are freely entered into at prices reflective of underlying market conditions.
π SIMILAR VOLUMES
To manage cost risk, prudent procurement of electric power requires that some portion of a buyer's energy demand be met through long-term contracting. Under cost-of-service regulation or performance-based regulation, a local distribution company (LDC) should be allowed to fully recover all prudently
The Granger instantaneous-causality test is applied to explore the potential causal relationships between wholesale electricity and natural-gas prices in California. The test shows these relationships to be bi-directional, and reveals California's electricity and natural-gas markets to be as inextri