With utility restructuring and increased competition, however, utilities may choose to manage this type of future risk by reducing their reliance on greenhouse-gas emitting sources and investing in low cost, nonpolluting resources like wind power. Similar to environmental regulations, fuel prices have the potential to upset electricity markets. The oil shocks of the 1970s and early 1980s left lasting memories of utilities' and energy users' dependence on fossil fuels. Unfortunately, it is difficult to predict future oil and gas prices. This reality makes it wise for utilities to manage fuel-price risks by taking steps to ensure a suitably diverse resource mix.
Wind energy is a viable option under such a strategy.
Today, customers in some parts of the country pay rates higher than the national average because of the unneeded generating capacity. Power suppliers continue to face the risk of uncertain future demand. Utility restructuring will likely highlight this risk for producers. The ability to respond quickly to changing market circumstances, including adding or delaying production capacity, will be crucial for effective management. Wind power meets the need for flexible energy production capacity, as do other options such as gas-fired combustion turbines.