Electricity prices in a competitive environment: Marginal cost pricing of generation services and financial status of electric utilities. A preliminary analysis through 2015
The emergence of competitive markets for electricity generation services is changing the way that electricity is and will be priced in the United States. This report presents the results of an analysis that focuses on two questions: (1) How are prices for competitive generation services likely to differ from regulated prices if competitive prices are based on marginal costs rather than regulated {open_quotes}cost-of-service{close_quotes} pricing? (2) What impacts will the competitive pricing of generation services (based on marginal costs) have on electricity consumption patterns, production costs, and the financial integrity patterns, production costs, and the financial integrity of electricity suppliers? This study is not intended to be a cost-benefit analysis of wholesale or retail competition, nor does this report include an analysis of the macroeconomic impacts of competitive electricity prices.
- Research Organization:
- USDOE Energy Information Administration, Washington, DC (United States). Office of Integrated Analysis and Forecasting
- Sponsoring Organization:
- USDOE Energy Information Administration, Washington, DC (United States)
- OSTI ID:
- 526772
- Report Number(s):
- DOE/EIA--0614; ON: DE97008785; NC: NONE
- Country of Publication:
- United States
- Language:
- English
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