“A free market in electricity is based on private property rights and voluntary exchange.”

– Michael Giberson, May 19, 2024

It’s a start. It took me a few dozen tries, but the definition has come from a (not-so) free market electricity advocate, Mike Giberson. Maybe Lynne Kiesling, woman of system and “The Queen of Electricity Markets,” will be next.

Fake free marketeers at the Niskanen Center and at R Street Institute are a plague on sound public policy analysis regarding electricity and other climate/energy issues. The sad case of Jerry Taylor of Cato and Niskanen is recounted here and here. But the problem also is with the energy specialists at R Street, including senior fellow Giberson. (See yesterday’s post on Devin Hartman, Giberson’s boss.)

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Mike Giberson knows his energy stuff and was/is free market in many areas, except for electricity.…

Update: Devin Hartman of R Street has blocked some of the links below. The debate is intellectual to me and PR/political to him. If he cannot define what a free market is in electricity, then he is not being honest with himself or the community.

“The core of [FERC] Order 1920 – economic planning – is sound policy.” (Devin Hartman, R Street Institute)

“You describe yourself as ‘pro-market,’ and R Street promotes itself as free market. What gives with central electricity planning and the ‘whole-of-government’ current federal approach? (R. Bradley, below)

R Street Institute advertises itself as “Free Markets. Real Solutions.” Devin Hartman, Policy Director, Energy and Environmental Policy; Resident Senior Fellow at R Street, advertises himself as “pro-market and environmental policy scholar and advocate” and

An established thought leader in energy and environmental policy with over a decade of experience, including nearly six years of experience at three regulatory bodies.

The perverse effort of some “free market” and “classical liberal” intellectuals to promote centrally planned electricity markets at wholesale (thus indirectly at retail) is a very curious example in the history of energy thought. Lynne Kiesling and Michael Giberson (see yesterday) are the guilty.

In AI and Economic Calculation (Substack), Kiesling explains the basics of the central-planning debate but ducks the elephant in her room, the centrally planned wholesale power market.

I have emphasized to Lynne Don Lavoie’s critique of noncomprehensive planning that went alongside his work on comprehensive planning, challenging her to forthrightly apply his argument to her beloved mandatory open access/Independent System Operator/Regional Transmission Organization (MOA/ISO/RTO) framework. The “knowledge problem” she champions reflects badly from her own mirror, if she would only see (impartial observer needed).…

“Giberson and Kiesling are all in with the Biden Agenda of the Production Tax Credit for industrial wind; the Investment Tax Credit for solar; pricing CO2, even if that means international ‘border adjustments.’ Two ‘classical liberals’ accepting rather than debating/criticizing climate alarmism and forced energy transformation? They should explain themselves rather than dodge, deflect, pretend.”

He steadfastly refuses to define what a free market is in electricity–and what the end state is for a classical liberal. Bonded with Lynne Kiesling, another pretend classical liberal when it comes to electricity, Michael Giberson can only claim to try to make the politicalized system better. And that is getting harder and harder to do.

Here is my latest exchange with Giberson on social media where he makes a specious argument that a regulated gasoline market at wholesale is analogous to a centrally planned electricity market.…