Increasing competition in the electric utility industry and decreasing consumer welfare: an antitrust paradox
Article Abstract:
The federal energy policy of allowing non-utility power generators to wheel excess electricity along a utility's transmission lines while requiring the utility to idle excess capacity as a backup subsidizes new entrants to the detriment of established utilities and consumers. If the Federal Energy Regulatory Commission wishes to open transmission lines, it should allow the market to dictate supply and demand without subsidizing some participants. The idled capacity and higher prices that currently result may be increasing competition, but they are also harming consumer welfare.
Publication Name: Antitrust Law Journal
Subject: Law
ISSN: 0003-6056
Year: 1996
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Requiring transmission access by electric utilities: the shifting roles of regulation and antitrust
Article Abstract:
The regulatory climate in the electricity industry has changed substantially since the Supreme Court decided Otter Tail Power Co. v. United States in 1973, but electric utilities are still not immune from antitrust suit on transmission access issues. In 1978, the Public Utility Regulatory Policies Act expanded Federal Energy Regulatory Commission authority to order wheeling. Since 1978, refusal to wheel suits have become less common, but antitrust liability may arise from participation in pools and Regional Transmission Groups.
Publication Name: Antitrust Law Journal
Subject: Law
ISSN: 0003-6056
Year: 1996
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Overview: deregulation and antitrust in the electric power industry
Article Abstract:
The primary role for antitrust enforcement agencies in the deregulation of the electricity industry may be to promote procompetitive solutions to the problems that will arise with increased access and pooling of resources. The telephone and gas utility models indicate that excessive antitrust activity can impede the progress of deregulation. Deregulation in electric utilities is occurring as a result of reduced transmission costs, increased access to markets, and increased cost-effectiveness of operating smaller power sources.
Publication Name: Antitrust Law Journal
Subject: Law
ISSN: 0003-6056
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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