Utility services employ nonlinear tariffs that attempt to convey information on cost convexities. This paper examines how customers respond to noisy and volatile tariffs by measuring deregulated retail rates' impact on electricity consumption in San Diego. When rates doubled in 2000, consumers...

Capacity mechanisms are adopted around the world to guarantee appropriate level of investment in electricity generation capacity. We discuss these approaches and analyze the capacity pricing mechanisms. We apply "conjectured supply function" and "fulfillment equilibrium" approach and show that...

We analyze the effects of the adoption of real-time pricing (RTP) of electricity when generating firms have market power. We find that an increase in consumers on RTP contracts decreases peak prices and increases off-peak prices, increases consumer surplus (both for switching and non-switching...