Citation:
Abstract:
Excerpt from the Introduction:
The electricity market is moving towards greater reliance on competition. Changing technology, new entrants in the generation market, and a legislative mandate to provide access to the essential transmission facility have accelerated a process of competition that will require major changes in the institutions and operations of the electricity market. Because of the special features of electricity supply, however, there are natural monopoly elements in electricity markets. Complete laissez faire competition is not desirable, and in the strictest sense would not be technically feasible. Even though increased competition appears inevitable, therefore, the specifics of how to implement an efficient competitive market are neither inevitable nor obvious. This paper outlines such a competitive market model.