DC Energy is committed to the development of efficient and reliable energy markets – for the exchange of both real energy products and their corresponding financial energy contracts. To deliver the core benefits of reasonable costs and reliability, efficient and robust energy markets are a necessity. Well-functioning markets share three key characteristics:
Open access: Competition and new entrants create entrepreneurial activity, the source of innovation. With the twin challenges of rising fuel scarcity and environmental constraints, fresh thinking and competition are critical to providing reliable solutions to end-users. Open access should allow participants to buy and sell at all the geographic points in the network - what is referred to as locational marginal pricing (LMP). Today over 60% of the US has adopted this fundamental competitive structure, with the remaining markets served by local monopolies.
Transparent pricing: Only when pricing reflects true underlying economics can the proper incentives exist for efficiently operating existing plants, rationally building new infrastructure and empowering the end-user to adjust their consumption. LMP serves to encourage competition and innovation and avoids the broad socialization and obfuscation of costs.
Safe and dependable credit policy: Though individual participants may fail or flourish, the market as a whole must be assured of the integrity of all transactions. Policies must be in place to ensure that contractual commitments are honored so that the entire industry can continue to function, regardless of the fortunes of individual firms.