Electricity Market Monitoring and the Economics of Regulation

Electricity Market Monitoring and the Economics of Regulation Restructuring of wholesale electricity markets in the U.S. has brought new institutions known as Regional Transmission Organizations (RTO) and Market Monitoring Institutions (MMI) that oversee competition in the energy markets that they operate. Both regulators and external observers have viewed MMIs as impartial observers intended to police these exchanges against the exercise of market power. The economics of regulation generally questions (but does not always reject) public interest interpretations on grounds that interest groups use politics and regulatory procedure to shape institutions to their advantage. MMIs in fact originated as a strategic move by California’s large utilities in connection with that state’s restructuring, intended to advantage them against competitors. The responses of MMIs to the economically efficient practice of “virtual bidding” in RTOs differed with the relative strengths of different interests in the governance of those organizations. As policy, the Federal Energy Regulatory Commission should re-examine its endorsement of MMIs and consider centralizing their functions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Electricity Market Monitoring and the Economics of Regulation

Loading next page...
 
/lp/springer_journal/electricity-market-monitoring-and-the-economics-of-regulation-AKrFBBxSB0
Publisher
Springer US
Copyright
Copyright © 2008 by Springer Science+Business Media, LLC.
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-008-9172-1
Publisher site
See Article on Publisher Site

References

  • Measuring duopoly power in the British electricity spot market
    Wolfram, C.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches

$49/month

Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.

$588

$360/year

billed annually
Start Free Trial

14-day Free Trial