RTO cost/benefit studies are difficult to reconcile.
The premise behind the Federal Energy Regulatory Commission's (FERC) push for regional transmission organizations (RTOs)-that they will provide positive economic benefits to society- increasingly is being challenged.
Why it happened? Who lost in the bust? Who will survive to build another turbine?
What can we learn from its failure?
Benchmarks
An analysis of the business opportunities behind coal and nuclear plant expansion.
Electric power industry trade publications and the popular media have noted a growing interest in the rebirth of both nuclear power and coal-fired generation. These technologies would be a supplement to, or an alternative to, the natural gas fired generation that appears to be the predominant fuel and technology for new power generation facilities in the coming decade.
1 See "" by Energy Ventures Analysis Inc. www.evainc.com
2 See "", published in June 2000 by PJM's Market Monitoring Unit, p. 2. In the year 2000, in five NERC power regions, natural gas represented more than 10 percent of total generation: ERCOT 53.3 percent, SPP 28.4 percent, NPCC (NY/NE) 25.6 percent, Florida (FRCC) 23.8 percent and WSCC 21.8 percent. In PJM only 8.7 percent of generation was gas-fired. Source: Form 759 and 900 data as complied by EVA, Inc.
3 , April 24, 2001, p. A-21.
To manage congestion on the power grid, most traders would rather book a firm path than risk a loss on a financial hedge.