Competition policy has an important but challenging role to play in promoting the energy policy goals of leveling the playing field for lower-carbon, more efficient fuels and technological innovation. Massive restructuring in both the electricity and petroleum industries calls for rigorous merger review and goodmarket design in paving the way for a shift in the energy equilibrium in the U.S. The AAI believes both traditional energy markets and more novel markets for emissions allowances can all benefit tremendously from the principles of competition. In energy, competition and regulation should play complementary roles.