Econometric models of power prices: An approach to market monitoring in the Western US

Publication Type

Journal Article

Date Published

12/2008

Abstract

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.

Volume

16

Year of Publication

2008

Issue

4
307

Pagination

307-320

Type of Article

Utilities Policy
Research Areas