Electric Markets Research Foundation Releases Initial Report Examining Traditional and Restructured Electricity Markets

    Electric Markets Research Foundation Releases Initial Report Examining
               Traditional and Restructured Electricity Markets

PR Newswire

WASHINGTON, Oct. 10, 2013

Next Report to Compare Ways of Ensuring Adequate Electricity Supplies

WASHINGTON, Oct. 10, 2013 /PRNewswire-USNewswire/ --The Electric Markets
Research Foundation today released a report by Navigant Consulting, Inc.
comparing the development of traditionally regulated electricity markets with
more recent restructured power markets often accompanied by retail customer
choice.

"Despite the long-standing market-versus-regulation debate, there has been
remarkably little independent investigation of the key issues critical to
understanding the nation's two distinctive different electricity systems,"
said Bruce Edelston, the foundation's president."This independent report by
Navigant, the first in a series of planned research papers, is designed to
help fill that void."

The report, "Evolution of the Electric Industry Structure in the U.S. and
Resulting Issues," examines how electric utility regulation has evolved and
why centralized markets developed in the Northeast, the Mid-Atlantic region,
much of the Midwest, Texas and California but not in others, especially the
Southeast, most of the Southwest and parts of the Midwest and West.

Also, the report provides an overview of the history of regulation and
competition in the power industry, from the foundations of regulation in early
U.S. Supreme Court history through key statutory developments, including the
Federal Power Act and the Public Utility Holding Company Act, to restructuring
in many regions and the Federal Energy Regulatory Commission's Order 1000. It
also studies how and why the two broad electricity market structures developed
and identifies issues encountered in both approaches that could be addressed
in future EMRF research projects.

Among the specific issues addressed by the Navigant report are how:

  oEach of the two retail and wholesale market structures works to ensure
    system reliability
  oEnvironmental requirements are addressed
  oRisks are allocated among generator, utilities, and customers
  oPlanning is done
  oThe two approaches address issues of regulatory jurisdiction

The report is meant to educate and define issues rather than to draw
conclusions.

One key area of difference identified in the Navigant report is how each power
market structure ensures the planning and construction of sufficient
generating capacity for utility customers. EMRF has selected this issue for
its first detailed review after the Navigant study because policy makers and
regulators across the country are increasingly concerned about generation
adequacy in both centralized markets with regional transmission organizations
and regulated markets with vertically integrated utilities.

The Foundation has issued an RFP to fund an independent expert to conduct
research on this issue. For copies of the RFP, as well as further information
about the Foundation, please go to www.emrf.net.

EMRF is an independent non-profit research organization formed to examine
issues surrounding the operation of alternative electric industry market
structures and how they are affected by public policy.

SOURCE Electric Markets Research Foundation

Website: http://www.emrf.net
 
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