Can I read Long-term capacity—A state regulatory view on EtoBox?

Long-term capacity—A state regulatory view by William H. Smith Jr. is a Energy article available to read on EtoBox.

What is Long-term capacity—A state regulatory view about?

## Long-Term Capacity-A State Regulatory View ERC's Notice of Inquiry (NOI), RM98-12, F gives the industry a very mixed bag to consider. To its credit, the NO1 correctly distinguishes between long-term and short-term markets. These two types of capacity exhibit very different market dynamics and, accordingly, need different regulatory treatment. The NO1 also correctly treats existing capacity and new capacity as different segments of the market. In the same way, their different market incentives suggest separate regulatory treatment. Unfortunately, the NO1 also suffers from a fundamental assumption that long-term contracts are preferable to short-term. The indicated reason is the benefit of long-term contracts for pipeline investment that may translate to lower rates for pipeline customers. Low price certainly is a desirable feature that customers look for, but it is not the only feature customers want to see in pipeline service, and often not the most important feature. . --NO1 also suffers from a fundamental assumption that long-term contracts are preferable to short-term. ## FERC's View of "Long Term" Is Longer Than Retail Reality FERC compounds its prejudice for longterm contra

Who reads Long-term capacity—A state regulatory view?

Author

William H. Smith Jr.

Publisher

John Wiley and Sons; Wiley (John Wiley & Sons); Wiley (ISSN 0743-5665)

Published

1999

Language

EN

Field

Energy (Physical Sciences)