martes, noviembre 28, 2006

Let's Get Out of Back Rooms to a Generative Dialogue Part 4

As you can see below, Gary Scheffer has responded to my suggestion of a generative dialogue, under the article AMI Services Solutions for Alberta's Deregulated Market. This is what I posted as a response.

Thanks Gary for your interest.

Electricity Without Price Controls (EWPC) is an emerging paradigm - no comparative studies exist as far as I know. The split of wires into T and D was a big mistake that needs to be undone. If necessary, the split of wires needs to be done area wise, by keeping cohesive T&D monopolies together linked by tie lines. Non real-time competitive activities - retail marketing and generation - as explained in a recent posts, should be left to a market that can be verify to enable workable competition.

For research, I suggest to study Spot Pricing of Electricity and in general the research led by Fred C. Schweppe of MIT from 1978 to 1988. In the early 90s a big mistake was done by Bill Hogan, which interpreted erroneously the work of Schweppe by assuring that distribution and retail marketing could be kept together. Hogan misunderstood the meaning of customer, which for Schweppe was the end-customer, to be even a utility-customer. The result was transmission open access and native loads own by utilities.

As for the extension of Schweppe work that is emerging I suggest to Google vanderhorst-silverio in the site of EnergyPulse for English speaking material. Please find in the May-June issue of IEEE Power & Energy Review the article a Dominican strategy. You may find under the Peak Load Management Alliance for the presentations I made in the Fall of 2004 Achieving Electricity Market Value through DR Technologies and in the Spring of 2005 Dominican Republic Electricity Risk: A Customer Orientation.

José Antonio Vanderhorst-Silverio, PhD
Interdependent (Systemic) Consultant on Electricity

Gary Shaffer post the following message on EnergyPulse

Dear All I am joining in from the Israel Electric, still a government owened vrtically integrated utility of some 11,000 MW, 2.3 million customers and some 45,000 km of transmission and distribution lines. We do it all, from power station and network construction through generation and supply to meter reading and invoicing and we are trying hard to avoid the mistakes some markets went through when restructuring their electricity business."the power brokers in the back rooms" in our case are ministry officials that will not stop at less than 3-5 power suppliers and 4-5 distribution local monopolies. Privat power producers have been encouraged by law for the last 10 years, but our price is too low so there are almost none. So I would like to take you up on Jose's proposition on the need for a generative dialogue. I am ofcourse mostly interested in avoiding the split of our wire business into mini-utilities. Can you suggest reaserch, articles, views, dealing with the optimal configuration of the wire business? are you aware of any comparative (benchmarking?) studies on this topice?

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