Diagnosing Market Power in Californias Deregulated Wholesale Electricity Market

Examines the degree of competition in the Cal. wholesale electricity market during the period June 1998 to Sep. 1999 by comparing the market prices with estimates of the prices that would have resulted if owners of instate fossil fuel generating facilities behaved as price takers. There were significant departures from competitive pricing & these departures are most pronounced during the highest demand periods, which tend to occur during the months of July-Sep. Through most of the winter & spring of 1999 there was little evidence of the exercise of market power. The exercise of market power raised the cost of power purchases by about 16% above the competitive level.Bornstein, Severin is the author of 'Diagnosing Market Power in Californias Deregulated Wholesale Electricity Market ' with ISBN 9780756709846 and ISBN 0756709849.