Scribd
Upload
32 views3 pages

Lecture1-Introduction Part10

The 1970s saw inflation and rising fossil fuel prices, leading to the enactment of the Public Utilities Regulatory Policies Act (PURPA) in 1978, which required utilities to buy power from independent generators. The 1990s and 2000s experienced significant industry competition due to the National Energy Policy Act of 1992, which mandated nondiscriminatory access to transmission. The goal of these changes was to lower prices and enhance efficiency in the electric utility industry.

Uploaded by

dfere
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
32 views3 pages

Lecture1-Introduction Part10

The 1970s saw inflation and rising fossil fuel prices, leading to the enactment of the Public Utilities Regulatory Policies Act (PURPA) in 1978, which required utilities to buy power from independent generators. The 1990s and 2000s experienced significant industry competition due to the National Energy Policy Act of 1992, which mandated nondiscriminatory access to transmission. The goal of these changes was to lower prices and enhance efficiency in the electric utility industry.

Uploaded by

dfere
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

History, cont’d -- 1970’s

• 1970’s brought inflation, stagnation of demand


growth, increased fossil-fuel prices, calls for
conservation and growing environmental
concerns.
• Increasing prices replaced decreasing ones.
• In that context, U.S. Congress passed Public
Utilities Regulatory Policies Act (PURPA) in 1978,
which mandated utilities must purchase power
from independent generators located in their
service territory (modified 2005).
• PURPA introduced some competition.
28
History, cont’d – 1990’s & 2000’s
• Major opening of industry to competition occurred as a
result of National Energy Policy Act of 1992.
• This act mandated that utilities provide “nondiscriminatory”
access to the high voltage transmission.
• Goal was to set up true competition in generation.
• Texas followed suit in 1996 and 1999.
• Result over the last few years has been a dramatic
restructuring of electric utility industry (for better or worse!)
• Energy Bill 2005 repealed PUHCA; modified PURPA.

29
Utility Restructuring
• Driven by significant regional variations in
electric rates, reflecting variations in generation
stock and endowments of natural resources.
• Goal of competition is to reduce prices and
increase efficiency:
– (in short term) through the introduction of
competition, and
– (in long term) competition’s incentives for
technological innovation.
• Allow consumers to choose their electricity
30supplier.

You might also like