Title :
Market gaming and market power mitigation in deregulated electricity markets
Author :
Lusan, D.A. ; Yu, Z. ; Sparrow, F.T.
Author_Institution :
Purdue Inst. for Interdisciplinary Eng. Studies, West Lafayette, IN, USA
fDate :
31 Jan-4 Feb 1999
Abstract :
Market gaming is a daily routine in a deregulated electricity market. It has been reported extensively that producers have been gaming in the England and Wales power market ever since the market was deregulated. In June 1998, wholesale electricity prices settled at $7000/MWh in the Midwest US market. The replacement power prices settled at $9999/MWh on July 13, 1998 in the newly formulated California Power Exchange. Market power abuses have caught the concern and attention of the Federal Energy Regulatory Commission, state regulatory commissions, and consumer groups. This paper examines different forms of electricity market power abuses and suggests mitigation strategies to minimize the effect of market power on the fledgling competitive markets in the US.
Keywords :
costing; electricity supply industry; California Power Exchange; England; Federal Energy Regulatory Commission; Midwest US market; Wales; consumer groups; deregulated electricity markets; electricity market power abuses; fledgling competitive markets; market gaming; market power abuses; market power mitigation; replacement power prices; state regulatory commissions; wholesale electricity prices; Costs; Electricity supply industry; Electricity supply industry deregulation; Monopoly; Power engineering and energy; Power generation; Power markets; Power supplies; Pricing; Supply and demand;
Conference_Titel :
Power Engineering Society 1999 Winter Meeting, IEEE
Print_ISBN :
0-7803-4893-1
DOI :
10.1109/PESW.1999.747272
