Buying and selling power in the age of competition

The American electric power industry is currently in the throes of striving for workable competition. Driven by the converging forces of deregulation, technological revolution, and evolving customer expectations, electric utilities are having to compete as never before at both the wholesale and retail levels. At times, the transition has been particularly wrenching, with some utilities going through painful internal restructuring and others being caught up in external consolidation. Increasingly, the key to success in this more competitive environment is anticipating and actively responding to the forces that are shaping the new markets for electric power. Here, the author describes how such market management is the subject of pioneering research being conducted in EPRI's Utility Resource Planning and Management Program. On the wholesale side, this research centers on the development of powerful analytical methods to support utility decisions regarding new opportunities in the bulk power market. Research on retail market management is concentrated on developing innovative price-differentiated services that can enhance the value of electricity to customers and also foster a utility's long-term financial competitiveness