Electricity reform and retail pricing in Texas

Peter Hartley, Kenneth Medlock and Olivera Jankovska

Energy Economics, 2019, vol. 80, issue C, 1-11

Abstract: Electricity market reforms have pursued two goals, both aimed at increasing economic efficiency. The first is to ensure that suppliers minimize costs. The second is to make prices more reflective of marginal costs. We use data from Texas to examine whether post-reform retail prices have better reflected wholesale prices, and whether reform has reduced retailer costs. We find clear evidence of both outcomes in competitive market areas but not in non-competitive areas supplied by municipally-owned utilities or co-operatives.

Keywords: Electricity market reform; Retail prices; Competition; Government-owned utilities; Shareholder-owned utilities; Cross-subsidization (search for similar items in EconPapers)
JEL-codes: D22 H42 L21 L32 L33 L94 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:80:y:2019:i:c:p:1-11

DOI: 10.1016/j.eneco.2018.12.024

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