Just got the "Electricity Restructuring" book and am enjoying it. Thanks to this Substack for getting me interested in and aware of electric grids as systems. Fascinating.
I noticed a story today that far-leftists in Congress have proposed a bill to in essence nationalize the Texas grid. Probably would have missed that if I had not been paying attention as a result of subscribing to this Substack.
Coase was opposed to public utility regulation and favored eliminating franchise protection, period. Milton Friedman also. The idea of a basic violation of private property rights (mandatory open access); a centrally planned wholesale grid (ISOs/RTOs); and an artificial retail market with huge transaction costs (where there was little before under PUR) is just the opposite re Ronald Coase.
And no, electricity is not a 'common pool resource' where private property rights and a free market cannot apply. Only mandatory open access made it so--this might be why Ostrom never consider it as such (correct me if I am wrong).
The US electricity market has never performed this badly in its nearly 150-year history. Government intervention is fundamental. Friedman, Coase, Demsetz, etc. were right, after all.
Just got the "Electricity Restructuring" book and am enjoying it. Thanks to this Substack for getting me interested in and aware of electric grids as systems. Fascinating.
I noticed a story today that far-leftists in Congress have proposed a bill to in essence nationalize the Texas grid. Probably would have missed that if I had not been paying attention as a result of subscribing to this Substack.
Coase was opposed to public utility regulation and favored eliminating franchise protection, period. Milton Friedman also. The idea of a basic violation of private property rights (mandatory open access); a centrally planned wholesale grid (ISOs/RTOs); and an artificial retail market with huge transaction costs (where there was little before under PUR) is just the opposite re Ronald Coase.
And no, electricity is not a 'common pool resource' where private property rights and a free market cannot apply. Only mandatory open access made it so--this might be why Ostrom never consider it as such (correct me if I am wrong).
The US electricity market has never performed this badly in its nearly 150-year history. Government intervention is fundamental. Friedman, Coase, Demsetz, etc. were right, after all.