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Why Are Energy Prices So High? Some Experts Blame Deregulation.


New transmission lines in deregulated markets often get limited review by state or federal officials, which means they are less likely to be rejected on the grounds that they are too expensive or that a less costly alternative, like a local power plant, could be substituted. Regional grid managers, which are generally not subject to state regulatory review, handle transmission planning.Another reason rates are high in deregulated areas is that wholesale energy markets are designed to pay all suppliers of electricity in a given area the same rate for the …

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