The California Electricity Crisis: What, Why, and What’s Next

• Main Authors: Cicchetti, Charles J. (Author), Dubin, Jeffrey A. (Author), Long, Colin M. (Author)
• Corporate Author: SpringerLink (Online service)
• Format: Electronic eBook
• Language: English
• Published: Boston, MA : Springer US, 2004.
• Subjects: Management.; Industrial management.; Energy industries.; Economics.; Management science.; Economic policy.; Social policy.; Regional economics.; Spatial economics.; Economics, general.; Energy Economics.; Regional/Spatial Science.; Innovation/Technology Management.; Economic Policy.; Social Policy.

This book attempts to explain what went wrong in California’s restructured energy markets and what must be done to restore California’s economy and build new electricity systems. The intention here is to reconcile the principles of competition and regulation. California had a severe electricity cris...

Table of Contents:

• Power Production Economics
• Principles of Traditional Regulation
• Reconciling Marginal Cost and Revenue Requirements
• Competitive Wholesale Markets for Electricity
• California’s Market Design: an Initial Success Followed by a “Perfect Storm”
• Design Flaws and a Worsening Crisis
• Testable Hypothesis
• Survey of Electricity Models for California
• An Economic Analysis of Natural Gas Price Movements During the Crisis
• An Econometric Analysis of Electricity Prices in California
• Market Manipulation
• Gaming and Cheating
• Market Monitoring and Initial Regulatory Response
• Refunds and Mitigation
• California Responds
• Handicapping the Winners
• Conclusion: Wrapping Up and Lessons Learned.