Given the limitations of data and resources available for market monitoring in electricity markets where regional transmission organizations (RTO) do not exist, we argue that econometric models of power prices could provide a useful screening tool for market monitoring. To explore its feasibility, we developed several econometric models of power prices at two major trading hubs in the West: Palo Verde and Mid-Columbia. We show that our models explain a large portion of the variation in power prices in Palo Verde and can establish a benchmark that can be used to identify outlier prices that are potentially the result of anti-competitive behavior.
BT - Utilities Policy DA - 12/2008 DO - https://doi.org/10.1016/j.jup.2007.12.001 IS - 4 LA - eng N2 -Given the limitations of data and resources available for market monitoring in electricity markets where regional transmission organizations (RTO) do not exist, we argue that econometric models of power prices could provide a useful screening tool for market monitoring. To explore its feasibility, we developed several econometric models of power prices at two major trading hubs in the West: Palo Verde and Mid-Columbia. We show that our models explain a large portion of the variation in power prices in Palo Verde and can establish a benchmark that can be used to identify outlier prices that are potentially the result of anti-competitive behavior.
PY - 2008 SP - 307 EP - 320 T2 - Utilities Policy TI - Econometric models of power prices: An approach to market monitoring in the Western US UR - https://www.sciencedirect.com/science/article/abs/pii/S0957178707000902 VL - 16 ER -