jueves, noviembre 08, 2007

The Lecture on EWPC Re-Regulation

The new lecture on the power industry is about EWPC re-regulation. With the same old lecture, Professor Banks is correct that E1R2 deregulation is a failure.

Dear Prof. Banks, Mr. Somsel and other intelligent and important writers and readers,

Thank you Fred for the challenge of your lecture. From your response (see below), I understand that the Conspiracy Theory Against Mr. X is confirmed.

That electric deregulation of the E1R2 kind has failed is well known and accepted worldwide for quite some time.

As documented above, and this is very recent, vertical integration with a process of customer wallet cleaning by incumbent utilities, based on an obsolete business model of utilities winning rate cases to regulators, placed the power industry from circa 1970 in the NO PROFIT ZONE and has definitely failed for even more time than E1R2 deregulation.

The more than a decade old debate between E1R2 deregulation and vertical integration has been a total waste of time for the customers and the general public. The new lecture seems to be just the same old lecture, as the fundamental elements of the EWPC winning market architecture and design paradigm breakthrough that emerged in the past two years are not mentioned at all. The new lecture is about EWPC as it is documented in its first version on www.energyblogs.com.

As a synthesis, EWPC is an R1E2 re-regulation under a structure of two interrelated markets:

(1) A controlled and integrated (T&D) transportation market, and

(2) An open market in the generation, retail, customer value chain, under prudential regulation, for generation and retail, instead of price controls for the end-customer.

The above market structure is the solution to the vertical integration problem and the way to go forward with the EWPC paradigm shift, to get the power industry into the PROFIT ZONE with business model innovations. This is the real progress.

Kind regards,

José Antonio

This is what Ferdinand E. Banks wrote on 11.8.07

Well, gentlemen, it looks to me as if we have made some real progress here - by that I mean admitting that electric deregulation has failed. That's all that I wanted. A few years ago I encountered people who cursed me roundly for suggesting that that had happened or could happen. Remember what Enron promised Governor Wilson in California about the amount that price would fall with deregulation. And Joseph, can you give give me the exact reference to the paper you mentioned (in EnergyPulse you say) so that I can cite it in my latest rant.


Reference and context: A New Lecture on Electric Deregulation Failure, by Ferdinand E. Banks, Professor.