“The best electric industry structure is the one that results in the lowest possible costs to customers. The best wholesale power market structure is a competitive structure that includes a competitive energy, ancillary services and capacity market,” says Dr. Joe Bowring, the independent auditor for PJM Interconnection.
Comparing merchant generators to utility generators, he notes: “Merchant generators put private capital at risk, enter the market when it appears profitable and exit the market when it is not profitable. The decisions are made entirely by private investors and the consequences are borne entirely by private investors. Customer funds are not used to fund the construction of merchant generation units and customer funds are not used to guarantee rates of return to investors when units underperform.”
Ohio electricity consumers are under siege from subsidy-seeking monopoly utilities. Bowring cautions: “Subsidies, particularly for mature technologies, result in customers paying more than they would pay without subsidies.” 10/19/2017