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
Date Written: 2014
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: Suggested Citation