Market power in deregulated wholesale electricity markets: Issues in measurement and the cost of mitigation

Seth Blumsack, Dmitri Perekhodtsev, Lester B. Lave

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)11-24
Number of pages14
JournalElectricity Journal
Volume15
Issue number9
DOIs
StatePublished - Nov 1 2002

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Energy (miscellaneous)
  • Management of Technology and Innovation

Fingerprint Dive into the research topics of 'Market power in deregulated wholesale electricity markets: Issues in measurement and the cost of mitigation'. Together they form a unique fingerprint.

Cite this