With an energy industry weakened by the stunning collapse of Enron and by the bankruptcy and near-bankruptcy of numerous industry giants, the golden days of the power markets seem all too distant. But it was only two years ago that new merchant trading affiliates were turning enormous profits, outstripping in a year’s time the long-term profits of their regulated parents.
Now the Federal Energy Regulatory Commission struggles to reshape its so-called Standard Market Design for electricity in order to mollify its critics and provide a framework for a more secure energy future. Congress, too, seeks to provide remedies for the woes of the power industry. Lawmakers hope to pass a comprehensive energy bill this year. And energy firms themselves have taken steps toward reform.
