Enron Mail |
As you have probably observed, power markets have been severely tested this
summer. There are many underlying causes (demand growth driven by a strong economy, failure of regulators to quickly grant applications for new generation, inadequate access to the grid, rate regulation which continues to insulate end users from real time price signals, etc.). But, the soundbite on these troubles has been that deregulation has led to problems on the grid. The knee jerk policy response has been price caps and other threats of re-regulation. At the upcoming advisory council meeting, Ken and I were hoping that the two of you could discuss the issue and help put it in perspective: How great of a threat is re-regulation. How might we respond. How likely is this issue to play a significant role in election politics?
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