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what prevents them from significantly raising rates permanently?
by Hello71 7y ago
what prevents them from significantly raising rates permanently?
- minikites 7y agoPeople would notice, protest, lobby government for regulation, the usual methods of expressing civil discontent. I'm talking about a situation where people don't notice until after the fact.
- brandmeyer 7y agoThere are other futures markets that are bootstrapped off of the day-ahead market. Weeks/months out are used to schedule maintenance operations. Years out are used to schedule construction/decommissioning. So if the extended market prices are high enough, then this acts as a signal to add generation and/or distribution capacity. Likewise, if the extended market prices are low enough, this acts as a signal to retire capacity that has a higher operating cost/lower profit margins.