By Todd Snitchler and Brian George for Utility Dive
Another week, another utility scandal. Late last month, a federal grand jury indicted the now former speaker of the Ohio House of Representatives following an alleged $60 million racketeering and bribery scheme. Just a week earlier, Chicago-based Exelon admitted to bribery in exchange for a $200 million fine. Now, regulators in Connecticut are questioning why power rates are skyrocketing following the bailout of Dominion’s Millstone nuclear plant.
While these headlines are recent, similar stories have written themselves for decades. Added up, they make a clear case for freeing captive utility customers and giving them access to more competitive power generation options. But not all markets are created equal. As stakeholders evaluate the Southeast Energy Exchange Market (SEEM), we should recognize the elements of market design that truly benefit consumers and encourage innovation and efficiency. As contemplated, SEEM could allow plenty of room for market power — and a rundown of past monopoly utility failures highlights the perils…
