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Economics dont always work to split the three because each business needs to have sufficient competition for it to work. You can't exactly build 5+ grids runnin

by Riod 11y ago

Economics dont always work to split the three because each business needs to have sufficient competition for it to work. You can't exactly build 5+ grids running parallel to each other. The generation part is already competitive FYI. IPPs are a thing (as pointed out in the article). Deregulated markets tend to have spikes or lots of space for IPPs to build and compete. Have you ever looked at the financials of a utility and understood the different rate regimes? Your suggestions come across as pretty naive tbh. Power generation, distribution and retailing is not equivalent to setting up a Walmart. Texas has a deregulated regime and regulators there are always looking into price spikes because customers don't like their bill to change radically from month to month. And their bills aren't exactly lower. And customers can already buy electricity from different providers. One of them is solar city (under a lease). Or resellers.

prostoalex 11y ago
Do you have a reading suggestion on understanding the economics of IPPs and effects of regulation/deregulation? I am also curious about more in-depth reading of Texas situation. Understood that a natural monopoly exists precisely because we don't want to run 5 competitive grids, but it also doesn't prevent a city (or county, or township, or HOA) from owning their last-mile distribution network (and having servicing/maintenance done by a contractor).
- Riod 11y ago
  Look up primers on us power generation, should be a section mentioning ercot and highlighting its unique features. Agree that cities could own last mile (preferable really). But, and this is a big but, they're not always well equipped to do so. Mismanagement on their part could be even worse. Though Canadian provinces seem to be pretty successful with their crown corporations like Hydo One. But I understand those are separately managed utilities that buy some power, make some power, and transmit power. Interestingly hydro one ipo'd last year. Could look at their ipo filings to understand its history.

by Riod 11y ago

prostoalex 11y ago

Do you have a reading suggestion on understanding the economics of IPPs and effects of regulation/deregulation? I am also curious about more in-depth reading of Texas situation. Understood that a natural monopoly exists precisely because we don't want to run 5 competitive grids, but it also doesn't prevent a city (or county, or township, or HOA) from owning their last-mile distribution network (and having servicing/maintenance done by a contractor).

Riod 11y ago
Look up primers on us power generation, should be a section mentioning ercot and highlighting its unique features. Agree that cities could own last mile (preferable really). But, and this is a big but, they're not always well equipped to do so. Mismanagement on their part could be even worse. Though Canadian provinces seem to be pretty successful with their crown corporations like Hydo One. But I understand those are separately managed utilities that buy some power, make some power, and transmit power. Interestingly hydro one ipo'd last year. Could look at their ipo filings to understand its history.