Template-Type: ReDIF-Article 1.0
Author-Name:  G. Alan Comnes
Author-Name:  Edward P. Kahn 
Author-Name:  Tim N. Belden
Title:  The Performance of the U.S. Market for Independent Electricity Generation
Classification-JEL: F0
Pages:  23-39
Volume:  Volume17
Issue:  Number 3
Year:  1996
Abstract:  We examine recent evidence on the economic performance of the U.S. independent electricity generation market. A sample of power purchase contracts for 26 independent power facilities is used as the basis of this assessment. The contracts were executed in various years between 1987-94. We describe qualitative features of the contracts, including dispatchability and allocation of fuel price risk. We standardize the price formulas of the contract sample and conduct a simple statistical analysis. Because of residual price variation and an indication that buyer willingness-to-pay is highly correlated with price, we conclude that bulk power sold by independent power producers is a heterogeneous product, and evidence for competition in market prices is weak.
Handle: RePEc:aen:journl:1996v17-03-a02
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=1227
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