46-55, for a proposal for disaggregation of generation and a discussion of tax and financing benefits that would accrue if Nevada Power sold its generation assets. However, we caution against disaggregation proposals that decrease private ownership of electric system assets and increase price differences based on tax differentials or regulatory treatments. Serving a single locality with more than one set of wires is feasible, as the previously mentioned experience in Lubbock, Texas, demonstrates. Some amendment of the Federal Power Act may be necessary to deregulate generation and reaffirm the traditional regulatory line between state and federal authority. Systems with hydroelectric sources of power can store to a limited extent.
Power is generated in the higher-demand daytime periods by depleting water reservoirs.
A wires company operating a spot scheduling market would not restrict its operations to one territory - it would schedule power flows from anywhere or to any region. Vernon L. Smith is Regents' Professor and McClelland Professor of Economics at the University of Arizona and Research Director of the Economic Science Laboratory, where he leads research in the areas of neuro-economics and complex trading systems. He received his bachelor's degree in Electrical Engineering from Cal Tech, and his Ph.D. in Economics from Harvard. Professor Smith's Papers on Experimental Economics was published by the Cambridge University Press in 1991. He is an Andersen Consulting Professor of the Year, and the 1995 Adam Smith award recipient from the Association for Private Enterprise Education.