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I don't disagree. Still, even in a marginal-cost pricing structure, individual consumers (big and small) can and indeed do make long-term fixed power deals with the generators. My utility offers the options of spot pricing for my power, and also fixed price contracts lasting for 1, 2, 3, 5 or 10 years.

Ironically, such contracts undermine the efficiency of the power market, at least when small consumers who aren't likely to stop using power when the price spikes, are given such options.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Mon Jul 23rd, 2012 at 06:42:26 AM EST
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