The effectiveness of FERC's transmission policy: Is transmission used efficiently and when is it scarce?

Andrew N. Kleit; James D. Reitzes

doi:10.1007/s11149-008-9056-1

The effectiveness of FERC's transmission policy: Is transmission used efficiently and when is it scarce?

Andrew N. Kleit, James D. Reitzes

John and Willie Leone Department of Energy & Mineral Engineering (EME)

Research output: Contribution to journal › Article › peer-review

10 Scopus citations

Abstract

We investigate the impact of FERC's policy to create Independent System Operators (ISOs) that independently manage regional electricity transmission resources and institute regional electricity exchange markets. Our analysis examines how the formation of the PJM ISO affected inter-regional electricity trading costs during the period from March 1997 to June 2002. We also examine how ISO formation affected the likelihood of encountering "congestion" in trading electricity between PJM and adjoining regions (particularly the New York ISO and the more loosely organized East Central Area of Reliability (ECAR)). In addition, our analysis estimates the marginal economic value of increased inter-regional transfer capability.

Original language	English (US)
Pages (from-to)	1-26
Number of pages	26
Journal	Journal of Regulatory Economics
Volume	34
Issue number	1
DOIs	https://doi.org/10.1007/s11149-008-9056-1
State	Published - Aug 2008

All Science Journal Classification (ASJC) codes

Economics and Econometrics

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10.1007/s11149-008-9056-1

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The effectiveness of FERC's transmission policy: Is transmission used efficiently and when is it scarce?

Abstract

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