 Impact of electricity deregulation in the state of CaliforniaGhazal Razeghi, Brendan Shaffer and Scott Samuelsen Energy Policy, 2017, vol. 103, issue C, 105-115 Abstract: The electric industry started as a natural monopoly and was regulated to protect the customers from high prices. Electricity deregulation was expected to reduce prices by introducing competitive markets. Every country or state implementing deregulation has gone through a unique experience. In this paper, the impact of electricity deregulation in the state of California is addressed by first examining historical retail prices, and second by developing a model to estimate the grid marginal costs using historical data. Results show that, although some customers pay lower rates today, the average customer does not pay a lower rate due to deregulation. Moreover, the results of the modeling show that the wholesale prices realized were higher than the marginal cost associated with the grid. Impacts of improved grid management are discussed along with transmission investments, market operator start-up and operation costs, energy and environmental goals, advances in technology on electricity prices, and the impact of deregulation on these factors. Keywords: Electricity deregulation; Restructuring; Environmental policies; Electricity prices; Energy crisis; Electricity market (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:103:y:2017:i:c:p:105-115 DOI: 10.1016/j.enpol.2017.01.012 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.