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- W190060640 abstract "In its Notice of Proposed Rulemaking (NOPR) on Independent Power Producers, the Federal Energy Regulatory Commission (FERC) asked whether increased pricing flexibility could be granted in bulk power markets found to be workably competitive. The Commission tentatively concluded that a bidding process would be workably competitive when (1) it elicits offers of power from at least three sources unaffiliated with the purchasing utility, and (2) the amount of capacity bid by unaffiliated sources is at least equal to the amount of capacity desired to be purchased. The proposed FERC rules may be moribund as some believe, but the three-seller test it suggests may not. This paper argues that the three-seller rule is seriously flawed and out of step with the direction of the industry toward increased competition. The paper also demonstrates that the three-seller rule is too simplistic to describe real markets; it ignores a complex set of conditions that are an intimate part of competitively structured markets, without an appreciation of how relaxation of regulatory oversight may be dangerous to the public interest. A more sophisticated set of criteria are suggested." @default.
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- W190060640 date "1990-03-01" @default.
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- W190060640 title "When are bulk power markets workably competitive" @default.
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