Retroactive Retrograde Retreat: Keeping FERC in the Generation Pricing Business Forever

How much market power is too much market power? Frank Wolak’s answer is to say that market power is excessive when it results in prices which are not “just and reasonable,” where just and reasonable means whatever FERC thinks it means. But this is nonsense. If FERC knew what a just and reasonable price was, it could have simply ordered it and there would have been no particular reason to deregulate.