Nomi:
> PUHCA should not have been repealed. Doing so makes it
> less likely any energy or utility company will focus on
> low margin business like transmission.
Stated differently, this goes back to what Diane was claiming. Electric
power in transmission is a quasi-public good:
High fixed cos
What I still do not understand is how you can have a free market in electric
power provision. What is "free" about it ?
As far as I can see, electricity supply operates on the basis of a
guaranteed market and a more or less monopoly position, from which consumers
cannot withdraw, and in which they
>From a more unlikely source:
Wessel, David. 2003. "A Lesson From the Blackout: Free Markets Often Need
Rules." Wall Street Journal (28 August): p. A 1.
"The blackout of 2003 offers a simple but powerful lesson: Markets are
a great way to organize economic activity, but they need adult
supervis
Nomi writes: >Right. Deregulation with a) more responsible federal oversight and b) a
set of rules which would create a 'more robust transmission system'
equals regulation, period.<
I tell my students in Money & Banking that the regulation vs. deregulation debate is a
snare and a delusion. Rather
t of the very companies it's supposed to
> be policing. Enough said.
-Original Message-
From: PEN-L list [mailto:[EMAIL PROTECTED] On Behalf Of Eugene
Coyle
Sent: Tuesday, September 02, 2003 10:38 PM
To: [EMAIL PROTECTED]
Subject: Re: [PEN-L] Krugman on faux ferc fines
This is a
On Tuesday, September 2, 2003 at 22:04:44 (-0400) Michael Pollak writes:
>...
> There is a theoretical case for a deregulated electricity market. But
> making such a market work, it's now clear, requires at least three
> preconditions. First, it requires a robust transmission system, yet
>
This is a good column by Krugman but he still hasn't gotten over his
training. He argues that there is a
theoretical case" for electric market deregulation when there is no such
case. If you study enough Micro theory you are screwed for life.
Gene Coyle
Michael Pollak wrote:
The New York Times
The New York Times
September 2, 2003
Another Friday Outrage
By PAUL KRUGMAN
W hen the E.P.A. makes our air dirtier, or the Interior Department
opens a wilderness to mining companies, or the Labor Department strips
workers of some more rights, the announcement always comes late on
