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

Seth Adam Blumsack, Dmitri Perekhodtsev, Lester B. Lave

Research output: Contribution to journalArticle

12 Citations (Scopus)

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

Fingerprint

market power
electricity
auction
market
costs
Costs
Industry
efficiency
industry
Power markets
Electricity market
Market power
Mitigation
Operating efficiency
Auctions

All Science Journal Classification (ASJC) codes

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

Cite this

@article{ce1a05f879a84790a32729add243f946,
title = "Market power in deregulated wholesale electricity markets: Issues in measurement and the cost of mitigation",
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.",
author = "Blumsack, {Seth Adam} and Dmitri Perekhodtsev and Lave, {Lester B.}",
year = "2002",
month = "11",
day = "1",
doi = "10.1016/S1040-6190(02)00386-X",
language = "English (US)",
volume = "15",
pages = "11--24",
journal = "Electricity Journal",
issn = "1040-6190",
publisher = "Elsevier Inc.",
number = "9",

}

Market power in deregulated wholesale electricity markets : Issues in measurement and the cost of mitigation. / Blumsack, Seth Adam; Perekhodtsev, Dmitri; Lave, Lester B.

In: Electricity Journal, Vol. 15, No. 9, 01.11.2002, p. 11-24.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Market power in deregulated wholesale electricity markets

T2 - Issues in measurement and the cost of mitigation

AU - Blumsack, Seth Adam

AU - Perekhodtsev, Dmitri

AU - Lave, Lester B.

PY - 2002/11/1

Y1 - 2002/11/1

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.

UR - http://www.scopus.com/inward/record.url?scp=0036829349&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0036829349&partnerID=8YFLogxK

U2 - 10.1016/S1040-6190(02)00386-X

DO - 10.1016/S1040-6190(02)00386-X

M3 - Article

AN - SCOPUS:0036829349

VL - 15

SP - 11

EP - 24

JO - Electricity Journal

JF - Electricity Journal

SN - 1040-6190

IS - 9

ER -