A market power analysis and its application on the California's wholesale electricity market

2001 Power Engineering Society Summer Meeting. Conference Proceedings (Cat. No.01CH37262) Pub Date : 2001-07-15 DOI:10.1109/PESS.2001.970097

P. Joskow, E. Kahn

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Abstract

This paper analyzes empirically whether or not the prices and related behavior observed in California's wholesale electricity market this past summer are consistent with what would be expected in a workably competitive market. Some have argued that the huge increase in wholesale electricity prices observed during the Summer 2000 can be fully explained by "market fundamentals" such as rising natural gas prices, increased loads in California, a reduction of supplies available for import into California due to higher loads elsewhere in the Western States Coordinating Council (WSCC) and poor hydro conditions in the Northwest. Our analysis incorporates these "market fundamentals" and seeks to quantify their effects on wholesale market prices in a competitive market. We find that actual wholesale market prices far exceed competitive benchmark prices that reflect this summer's natural gas price, demand, and import conditions. Thus, these "market fundamentals" cannot explain the huge increases in wholesale market prices observed during Summer 2000.

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市场力分析及其在加州电力批发市场的应用

本文实证分析了去年夏天在加州批发电力市场观察到的价格和相关行为是否与在一个可行的竞争市场中预期的一致。一些人认为，2000年夏季观察到的批发电价大幅上涨可以完全用“市场基本面”来解释，例如天然气价格上涨、加州负荷增加、西部各州协调委员会(WSCC)其他地方负荷增加导致加州进口供应减少以及西北部水力条件差。我们的分析结合了这些“市场基本面”，并试图量化它们在竞争市场中对批发市场价格的影响。我们发现，实际批发市场价格远远超过反映今年夏季天然气价格、需求和进口条件的竞争性基准价格。因此，这些“市场基本面”不能解释2000年夏季批发市场价格的大幅上涨。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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2001 Power Engineering Society Summer Meeting. Conference Proceedings (Cat. No.01CH37262)

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