These are uncertain times for competitive electricity markets. Cheap natural gas, zero marginal cost renewables, and stalled demand growth have deflated energy prices. Merchant generators are getting subsidies to survive and states that were once pioneers of deregulation are getting cold feet.
At this important inflection point for our energy future, regulators need to take a step back and look at the full picture. With electricity markets struggling, time is running out to give demand participation an equal role in competition. Competitive retailing was supposed to accomplish this, however the results have been disappointing.
Will the genie of deregulation go back in the bottle? How can we get retail competition right? What is the role of regulators? [Read more…]