Saturday, June 7, 2008
This applies to PES as well
"That’s because in half the country the electricity sector, where most expect the bulk of CO2 reductions to come from, isn’t a competitive market. Utilities are publically owned and prices are set at cost of service, as opposed to marginal cost. This means that they don’t make any profit, and customers see a price that is equal to the average cost of producing the electricity they consumed (Common Tradedies)."