IDEAS home Printed from https://ideas.repec.org/a/eej/eeconj/v26y2000i4p455-468.html
   My bibliography  Save this article

Substitution between Bundled and Unbundled Products after Deregulation in Electricity Generation

Author

Listed:
  • S. Keith Berry

    (Department of Economics and Business, Hendrix College)

Abstract

With partial electric utility deregulation, regulators will continue to regulate transmission and distribution (T&D) rates, while generation prices are unregulated and stochastic. Consumers will migrate between bundled and unbundled rate classes depending on individual rates of trade-off between generation price and generation price variance. In the linear pricing case, with large variance and increasing returns to scale, the unbundled class should have the lower T&D price. In a non-linear (two-part rates) stochastic model, the per unit rates of both bundled and unbundled classes should be set less than marginal cost.

Suggested Citation

  • S. Keith Berry, 2000. "Substitution between Bundled and Unbundled Products after Deregulation in Electricity Generation," Eastern Economic Journal, Eastern Economic Association, vol. 26(4), pages 455-468, Fall.
  • Handle: RePEc:eej:eeconj:v:26:y:2000:i:4:p:455-468
    as

    Download full text from publisher

    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume26/V26N4P455_468.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Deregulation; Electricity;

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:26:y:2000:i:4:p:455-468. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Matheson, College of the Holy Cross (email available below). General contact details of provider: https://edirc.repec.org/data/eeaa1ea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.