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Peter Cramton on the retail electricity market in California

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Title : Peter Cramton on the retail electricity market in California
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Peter Cramton on the retail electricity market in California

 Peter Cramton* is an astute observer of electricity markets.  Here's his op-ed in the San Diego Union-Tribune:

Commentary: My monthly electric bill in Texas would be $250. In California, it is $1,000. Here’s why.

Here's the first paragraph:

"Rolling outages may appear to be a symptom of climate change. Extreme heat and intermittent renewables certainly challenge electricity markets. But these challenges can be met with good market design. The California market has flaws that make California electricity more expensive and less reliable than it should be. Fixing these flaws should be a priority."

and here's the final paragraph:

"California illustrates that good intentions do not necessarily produce good policy. Good policy is designed from what we know about markets and human behavior. Good policy is the only way to provide reliable electricity at least cost"


*"Cramton is a professor of economics at the University of Cologne and the University of Maryland, is an independent board member of ERCOT, the electricity operator in Texas. The views here are his own and not those of ERCOT or ERCOT’s board."



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