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Customer Risk from Real-Time Retail Electricity Pricing : Bill Volatility and Hedgability
Borenstein, Severin - 2010
very simple hedging strategies can eliminate more than 80% of the bill volatility that would otherwise occur. Far from … significantly enhance their effect on reducing bill volatility …
Persistent link: https://www.econbiz.de/10012760642
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The Smart Grid, Entry, and Imperfect Competition in Electricity Markets
Allcott, Hunt - 2014
Most US consumers are charged a near-constant retail price for electricity, despite substantial hourly variation in the wholesale market price. The Smart Grid is a set of emerging technologies that, among other effects, will facilitate "real-time pricing" for electricity and increase price...
Persistent link: https://www.econbiz.de/10013066116
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Price Risk, Production Flexibility, and Liquidity Management : Evidence from Electricity Generating Firms
Lin, Chen - 2017
electricity price volatility leads to increased cash holdings, but only in firms using inflexible production technologies. This … effect is robust to a number of specification choices including instrumenting for volatility in electricity prices using … easily hedge the electricity price through derivative markets. Capital market liquidity and balance sheet liquidity appear to …
Persistent link: https://www.econbiz.de/10012955945
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When Does Regulation Distort Costs? Lessons from Fuel Procurement in U.S. Electricity Generation
Cicala, Steve - 2014
This paper evaluates changes in fuel procurement practices by coal- and gas-fired power plants in the United States following state-level legislation that ended cost-of-service regulation of electricity generation. I find that deregulated plants substantially reduce the price paid for coal (but...
Persistent link: https://www.econbiz.de/10013054040
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Trading Inefficiencies in California'S Electricity Markets
Borenstein, Severin; Bushnell, James; Knittel, … - 2021
We study price convergence between the two major markets for wholesale electricity in California from their deregulation in April 1998 through November 2000, nearly the end of trading in one market. We would expect profit-maximizing traders to have eliminated persistent price differences between...
Persistent link: https://www.econbiz.de/10013218707
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The Impact of Market Rules and Market Structure on the Price Determination Process in the England and Wales Electricity Market
Wolak, Frank; Patrick, Robert H. - 2021
This paper argues that the market rules governing the operation of the England and Wales electricity market in combination with the structure of this market presents the two major generators National Power and PowerGen with opportunities to earn revenues substantially in excess of their costs of...
Persistent link: https://www.econbiz.de/10013219289
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A Quantitative Analysis of Pricing Behavior in California'S Wholesale Electricity Market During Summer 2000
Joskow, Paul L.; Kahn, Edward - 2021
We simulate competitive benchmark wholesale prices for electricity in California during the summer of 2000, taking account of changes in natural gas prices, electricity demand, and imports of electricity from other states during this time period. We also examine the impact of changes in the...
Persistent link: https://www.econbiz.de/10013233014
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Do Energy Efficiency Investments Deliver at the Right Time?
Boomhower, Judson; Davis, Lucas W. - 2021
Electricity cannot be cost-effectively stored even for short periods of time. Consequently, wholesale electricity prices vary widely across hours of the day with peak prices frequently exceeding off-peak prices by a factor of ten or more. Most analyses of energy-efficiency policies ignore this...
Persistent link: https://www.econbiz.de/10013247850
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Wealth Transfers from Implementing Real-Time Retail Electricity Pricing
Borenstein, Severin - 2021
under the more extreme price volatility scenario that I examine, 90% of customers would see changes of between a 9% bill …
Persistent link: https://www.econbiz.de/10013213462
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An Empirical Analysis of the Potential for Market Power in California'S Electricity Industry
Borenstein, Severin; Bushnell, James - 2021
We use demand and plant-level cost data to simulate competition in a restructured California electricity market. This approach recognizes that firms might have an incentive to restrict output in order to raise price and enables us to explicitly analyze each firm's ability to do so. We find that,...
Persistent link: https://www.econbiz.de/10013214593