Chip Cannon Quoted in POWER Magazine on Evolution of Power Business Models
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POWER magazine has quoted Chip Cannon, head of Akin Gump’s energy regulation, markets and enforcement practice, in the article “The Evolution of Power Business Models.” The article looks at how power business models have changed over the years, noting that new models are focusing more on customer preference and regulatory and market structure transformations.
Cannon discussed what he sees as the likely trajectory of power sector business models in the future. In the near term, he said, the biggest influence will be carbon. It is only a matter of time, he said, “before the price of wholesale power reflects the cost of carbon,” though that could change, he pointed out, depending on the outcome of the presidential election.
In the absence of congressional action, Cannon said, “the administrators of the regional wholesale power markets are likely to implement rules to accommodate carbon pricing mechanisms implemented by the states within their regional footprints.”