
Utility Management Group
Senior decision-makers come together to connect around strategies and business trends affecting utilities.
Shared Link
Energy-Only Blackout Power Is Not a Commodity
Several regions across the country with wholesale electricity markets are working to address market deficiencies impacting resource adequacy requirements along with State Energy Goals and Green Buyer (Prosumer) initiatives. The linked analysis below describes the complete failure, pain and destruction that a poorly designed wholesale electricity market can bring upon a population. Many Texans suffered financially, physically, emotionally and some even died, as a result of a lack of empathy for fellow Texans and an unwavering commitment and confidence in voodoo economics known as "scarcity pricing", by Regulators. The linked article below is spot on with this observation:
" This is not the first time a power market has collapsed in the US. California’s power markets failed in 2001 for the same reason – a poorly designed market, created for traders by traders. Politicians and regulators in both Texas and California bought into the concept of deregulated and commoditized electricity, without understanding the supply risks to produce and deliver it. "
From everything I've observed in recent market reform discussions, the regulators continue to operate blindly without understanding the supply risks to produce and deliver electricity and that can't be good for a population that will have to endure the pain that these poor market designs will inflict, like the people of Texas experienced.
Energy-Only Blackout Power Is Not a Commodity
The anger and frustration levels have been high in Texas. Last weeks hearings at the State Capitol provided a much needed opportunity to vent.
Discussions
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.
Sign in to Participate