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You should pay people for two different services, because they are delivering two different services: One service is providing power when they tell you they can provide power (with higher price for better ability to forecast). The other is providing power when you want power. In other words, you pay one sort of price for MW and another sort of price for MWh.

Of course the coal-burners are going to scream bloody murder over this, because they like being able to extract rent from the spot market while not running liquidity risk due to being fully amortised. But screw them.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Jun 26th, 2011 at 04:08:15 AM EST
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