This article provides a detailed analysis of generation plant operating cost efficiency over the period 1988–1997. I estimate a stochastic frontier cost function together with a model of plant inefficiencies to measure the operating efficiencies of individual plants and identify factors that...

Electric utilities today face increasing competition from substitutes for utility-generated power. As a result, utilities are being forced to reevaluate their pricing policies to address competition from other fuels and potential customer 'bypass' of the utility. This paper extends the analysis...