Is the price squeeze doctrine still viable in fully-regulated energy markets

Journal Article · Fri Jan 01 04:00:00 EST 1993 · Energy Law Journal; (United States)

OSTI ID:6499609

Spiwak, L J

Simply stated, a price squeeze occurs when a firm with monopoly power on the primary, or wholesale, level engages in a prolonged price increase that drives competitors out of the secondary, or retail level, and thereby extends its monopoly power to the secondary market. A price squeeze will not be found, however, for any short-term exercise in market power. Rather, because anticompetitive effects of a price squeeze are indirect, the price squeeze must last long enough and be severe enough to produce effects on actual or potential competition in the secondary market. In regulated electric industries, a price squeeze claim usually arises from the complex relationship between the supplier, the wholesale customer, the retail customer, and the federal and state regulators. The supplier sells electric power to both wholesale and retail customers. Wholesale transactions are regulated by federal regulators, and retail transactions are regulated at the state level. The wholesale customers in turn sell power to their retail customers. Over the last several years, there have been substantial developments in the application of the price squeeze doctrine to fully-regulated electric utilities. This article will examine the current developments in this area, and attempt to highlight the burdens potential litigants, both plaintiffs and defendants, must overcome to succeed.

• OSTI ID: 6499609
• Journal Information: Energy Law Journal; (United States), Journal Name: Energy Law Journal; (United States) Vol. 14:1; ISSN 0270-9163; ISSN ELJOEA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290201 -- Energy Planning & Policy-- Economics-- (1992-)
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
296000 -- Energy Planning & Policy-- Electric Power
ADMINISTRATIVE PROCEDURES
ANTITRUST LAWS
COMPETITION
CONSUMER PROTECTION
ELECTRIC POWER INDUSTRY
ELECTRIC UTILITIES
INDUSTRY
LAWS
LAWSUITS
MARKET
MONOPOLIES
NATIONAL ORGANIZATIONS
PRICING REGULATIONS
PUBLIC UTILITIES
REGULATIONS
US DOE
US FERC
US ORGANIZATIONS