Wholesaling in Electricity: Inching Along |
| |
| Authors: | STEVEN N ISSER MARCELA TRIBBLE |
| |
| Institution: | Steve N. Isser is an Associate at Ballard, Spahr, Ingersoll, and Andrews, a leading national law firm in Washington, D.C. He works on energy, electricity, and related regulatory matters. He is a graduate of the University of Pennsylvania and has a Ph.D. in economics and a J.D. from the University of Texas. He has extensive energy and regulatory experience in the United States and in the former Soviet Union. He has published several books and articles on regulation.;Marcela Tribble is Associate Director of the School of Policy and Management at Florida International University. She recently earned an MPA degree from FIU and is currently working on her doctorate in public management. She has held numerous management positions at universities and in the private sector. She has written several published articles on immigration, citizen participation, and economic development. |
| |
| Abstract: | This article discusses the incremental but increasingly assertive efforts by federal policy makers toward encouraging deregulation of the electric utility industry. Focusing on the efforts of the Federal Energy Regulatory Commission (FERC), we conclude that the federal government is involved in a sort of two‐sided experiment. On the one hand, efforts to deregulate the electric power industry attempt to establish a competitive market pose the question: Can government provide rational guidance in the formation of markets in a complex industry? On the other hand, it asks whether the democratic process can permit agencies such as FERC to impose and implement an economically rational design on a self‐interested pubic that is mostly interested in cheap, reliable power. In a sense, FERC is auditioning for a new role for regulatory agencies—as designers and overseers of markets. This is a dramatic shift from the traditional role of “regulator as policeman.” Whether regulators are up to the task remains to be seen. |
| |
| Keywords: | |
|
|
