: He argues that markets are inherently complex because consumers often lack real-time metering/billing and cannot be individually disconnected for non-payment, requiring regulatory intervention for stability. Fixed Cost Recovery
Stoft details how generators can "game" the system—physically withholding power to drive up prices or engaging in "economical withholding" by bidding far above marginal cost. His analysis of the California crisis is a masterclass in this pathology. He shows that the crisis was not just Enron’s malice, but a fundamental design flaw that allowed generators to exploit congestion protocols.
Lucas was a graduate student in Electrical Engineering, brilliant with circuits and load flow equations, but currently drowning in the murky waters of energy policy. His thesis advisor, Dr. Aris, had torn apart his first draft.
: He argues that markets are inherently complex because consumers often lack real-time metering/billing and cannot be individually disconnected for non-payment, requiring regulatory intervention for stability. Fixed Cost Recovery
Stoft details how generators can "game" the system—physically withholding power to drive up prices or engaging in "economical withholding" by bidding far above marginal cost. His analysis of the California crisis is a masterclass in this pathology. He shows that the crisis was not just Enron’s malice, but a fundamental design flaw that allowed generators to exploit congestion protocols.
Lucas was a graduate student in Electrical Engineering, brilliant with circuits and load flow equations, but currently drowning in the murky waters of energy policy. His thesis advisor, Dr. Aris, had torn apart his first draft.