Contents: Introduction to the handbook on electricity markets / Jean-Michel Glachant, Paul L. Joskow and Michael G. Pollitt -- Part I: Taking stock: the legacy -- 2. Strengths and weaknesses of traditional arrangements for electricity supply / Richard Schmalensee -- 3. Optimal wholesale pricing...

Currently, most U.S. electricity consumers pay a constant price per kWh consumed that accounts for most of their bill. Ongoing developments in the power system increase efficiency gains that can be made from exposing consumers to widely varying wholesale spot prices. Pure spot pricing is not...