Unbundling the electric capacity price in a deregulated commodity market

Journal Article · Thu Nov 30 23:00:00 EST 1995 · Fortnightly

OSTI ID:232042

Rose, J; Mann, C ^[1]

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1. ICF Resources, Fairfax, VA (United States)

In a deregulated, unbundled market, capacity has value separate from energy. The exact price will reflect the cost of a gas-fired combustion turbine. Energy values alone will not suffice to estimate the firm price for electric power. The lack of quotable, unbundled capacity prices creates uncertainty, especially given the direction taken by the Federal Energy Regulatory Commission in its March 1995 Notice of Proposed Rulemaking on stranded investment and open-access electric transmission. What conclusions can be drawn from the current regime that might paint a picture of tomorrow`s market?

• OSTI ID: 232042
• Journal Information: Fortnightly, Journal Name: Fortnightly Journal Issue: 22 Vol. 133; ISSN FRTNE8
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
DEREGULATION
ECONOMIC ANALYSIS
ELECTRIC POWER
ELECTRIC POWER INDUSTRY
MARGINAL-COST PRICING
PRICES
SUPPLY AND DEMAND