Electric power brokers and marketers alter the industry

Recent legislative and regulatory initiatives have significantly altered strategic assessments of the US power generation industry. The transmission access revolutions targeted by the Energy Policy Act of 1992 (EPAct) and fostered by FERC, coupled with movement to real-time pricing and information exchange, has created opportunities for new entrants to develop and shape services which meet the demands of newly formed niche power generation markets.As a result, power brokers and marketers have prospered under the march to deregulation and are emerging as major players in the power industry for the next several years. While their initial strategic focus has been on wholesale transactions, other strategic roles in international and domestic retail markets are envisioned for the future. The paper discusses power suppliers, power customers, the spot market, contract reformation, price versus quantity, and specialized experience.