Power market restructuring in California has focused the nation's attention on the problems, but they can be fixed as the market is allowed to adjust. Brendan Kirby of the lab's Power Systems Research program notes that deregulation of the telephone industry caused a temporary uproar but consumers are now reaping the benefits with more choices and lower prices. The electric utilities, however, face unique problems because electricity cannot be stored and, unlike with gas lines, the utilities cannot adjust flow to meet demand in different parts of the region. Still, Kirby sees the situation in California as being temporary and perhaps something that can be used as a lessons learned for places like New York and other parts of the country likely to face similar challenges in the future. Part of the problem, Kirby says, is that prices paid by consumers don't reflect actual costs - especially at peak times - but new technologies could instantaneously communicate that information to the consumers and allow them to adjust accordingly.
Menu