Deregulation & Privatization: Texas Electric Power Market Evidence

Review of Business & Finance Studies, Vol. 5, No. 2, pp. 117-126, 2014

10 Pages Posted: 13 Dec 2014

See all articles by Eric L. Prentis

Eric L. Prentis

University of Saint Thomas, Houston

Date Written: 2014

Abstract

The electric power industry is moving away from a regulated utility model, toward a deregulated market-based model - thereby intending to improve system efficiency by reducing generation costs and customer prices, while at the same time improving capital expenditures and service reliability. This paper is the first in the literature to statistically test Texas’ electricity prices, relative to U.S. electricity prices - and use energy emergency alerts and reserve margin forecasts to determine Texas’ power system reliability - since deregulation in 2002. Implementation of suggested reforms will help ensure the market-based design succeeds. Recommendations are offered for future research.

Keywords: Texas Electricity Market, Deregulation, Privatization, Reserve Margins

JEL Classification: G31, G38, H44, K23

Suggested Citation

Prentis, Eric L., Deregulation & Privatization: Texas Electric Power Market Evidence (2014). Review of Business & Finance Studies, Vol. 5, No. 2, pp. 117-126, 2014, Available at SSRN: https://ssrn.com/abstract=2459705

Eric L. Prentis (Contact Author)

University of Saint Thomas, Houston ( email )

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