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Nicholas Institute for Environmental Policy Solutions
Given stated stakeholder clean energy and consumer goals, this paper offers a way to evaluate options for enhancing competition, compared to how utilities traditionally operate the electricity grid. The focus here is on wholesale transactions between generators and utilities serving end-use customers. These utilities then sell electricity at retail to their customers, and in many regions including the Southeast, they are state-regulated monopolies responsible for serving their customers at least cost. Their customers generally cannot choose a different utility or particular type of generation. For the purposes of this paper, this retail structure is assumed to remain unchanged.