Lester B. Lave, Jay Apt, and Seth Blumsack
Proponents of free markets for electricity assert that minor fixes to
the California market and to FERCís standard market design (SMD) would
generate lower prices. We disagree. Designing a competitive market that
remedies the problems seen in California and other restructured markets
is difficult; emulating even good ISOs like PJM will not do the job.
Each one of the problems can be overcome, but the costs of doing so
might make full deregulation unattractive.
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