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To: yard_man who wrote (54171)	1/4/2001 7:40:37 PM
From: flatsville	Read Replies (1) \| Respond to of 436258

Right now the deregulation model is: Distribution and transmission are partly if not totally "natural" monopolies and need to continue to be regulated and generation is not and should therefore be deregulated, but it is very difficult to separate the two when the US grid is really like 3 big machines -- generators can compete only to the extent that there aren't transmission bottlenecks. What I don't understand is how you can treat one as competitive and the other one as not and expect market forces to allocate efficiently between the two -- Right now in the wholesale market it seems to me we have a system that is a lot like "swaps" -- contract paths are a complete fiction -- unless network flow is incorporated in the financial deals, no way can transmission/generation allocative efficiency be reached ... This is part of what was nagging at me yesterday re: energy issues when I posted to chic. Message 15116799 A few months ago I began researching cos. likely to solve the transmission/distribution issue and landed on IMG as one of the better bets (actually has real earnings.) I had my eye on a few of these superconducting cos. when the got run-up early on last year (and have since fallen back to earth.) This fall I decided it was still too early to go long in any real way (given sh!tty market conditions.) But the real reason being that until the transmission and distribution part of the equation is addressed with the right technology and capex by the industry IMG won't go much of anywhere. Until those two things happen and regulators understand that trans/dist is part of the equation true dereg cannot take place. Am I wrong here? And do you have any feeling on IMG, AMSC or other companies trying to solve the transmission/distribution issues?