Richard Rosen

Richard Rosen follows electricity deregulation at the Tellus Institute, which he co-founded.

Recent Articles

Regulating Power

I gnored in the scandal about Enron's off-the-books deals is the fact that Enron's core businesses--trading and selling energy--made little economic sense. Starting in the early 1990s, Enron claimed it could make electricity generation more efficient through a system to trade more electric power than regulated utilities. To that end, the company urged the Federal Energy Regulatory Commission (FERC) to promote the deregulation of wholesale electric markets. But whenever there was an opportunity to reduce consumers' electric rates by trading power at the wholesale level, the old regulated electric utilities had always done so. Indeed, most electric utilities had already grouped themselves into "power pools" or other voluntary energy-swapping systems set up to trade power at its cost of production--the cheapest approach for consumers. If we calculate the relative costs of producing and selling electricity, new wholesale traders like Enron could have reduced our national average electric...