Pros & Cons of Virtual Utility

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Pros & Cons of Virtual Utility

Introduction
Generation assets and retail energy portfolios have long been viewed as naturally offsetting, a thesis that is the foundation of both the classic electric utility model and the commercial activities of many merchant energy companies. More recently, some IPPs (both public and privately owned companies) have championed the model of combining assets and retail load. Given the substantial costs that generation owners typically pay in acquiring or building retailer, however, a rigorous analysis of the benefits and drawbacks of this strategy is in order.

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