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Retroactive Retrograde Retreat: Keeping FERC in the Generation Pricing Business Forever

✍ Scribed by Jonathan Falk


Publisher
Elsevier Science
Year
2003
Tongue
English
Weight
262 KB
Volume
16
Category
Article
ISSN
1040-6190

No coin nor oath required. For personal study only.

✦ Synopsis


How much market power is too much market power? Frank Wolak's answer is to say that market power is excessive when it results in prices which are not ''just and reasonable,'' where just and reasonable means whatever FERC thinks it means. But this is nonsense.

If FERC knew what a just and reasonable price was, it could have simply ordered it and there would have been no particular reason to deregulate.