TY - JOUR
T1 - Market power in deregulated wholesale electricity markets
T2 - Issues in measurement and the cost of mitigation
AU - Blumsack, Seth
AU - Perekhodtsev, Dmitri
AU - Lave, Lester B.
N1 - Funding Information:
This research was supported by grants from The Sloan Foundation and EPRI; the opinions and any errors are those of the authors and should not be ascribed to the grantors.
PY - 2002/11
Y1 - 2002/11
N2 - An analysis of three recently deregulated markets-California, PJM, and New York-finds that none of them can be regarded as highly competitive, contrary to what conventional measures of market power indicate. Auctions for generation are unlikely to be competitive and costly steps will be needed to mitigate market power, likely eroding any benefits from increased operating efficiency in deregulated markets. Thus, FERC and state legislators need to reexamine the desirability of deregulating the generation portion of the industry.
AB - An analysis of three recently deregulated markets-California, PJM, and New York-finds that none of them can be regarded as highly competitive, contrary to what conventional measures of market power indicate. Auctions for generation are unlikely to be competitive and costly steps will be needed to mitigate market power, likely eroding any benefits from increased operating efficiency in deregulated markets. Thus, FERC and state legislators need to reexamine the desirability of deregulating the generation portion of the industry.
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U2 - 10.1016/S1040-6190(02)00386-X
DO - 10.1016/S1040-6190(02)00386-X
M3 - Article
AN - SCOPUS:0036829349
SN - 1040-6190
VL - 15
SP - 11
EP - 24
JO - Electricity Journal
JF - Electricity Journal
IS - 9
ER -