Insight on oversight

Regulators should not exert least-cost and spot pricing demands on the public utilities market without allowing incentives for long-term, fixed-price contracts. Regulators should pursue unbundled services and rely on deregulated market forces to govern the utilities market. Long-term contracts should be preapproved and incentives, rather than regulations, should be used to achieve efficiency of cost and production. Absolute reliance on spot-pricing could lead to extreme fluctuations in pricing and would dissuade long-term investments.
A trio of tenets state regulators can use to maximize benefits from natural gas and emission allowance markets. A DRAMATIC CHANGE HAS OCCURRED IN RECENT YEARS IN THE ROLE MARKETS [...]