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The Future of Nuclear Power in A Restructured Electricity Market

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  • Donald N. Dewees

Abstract

Restructuring is causing fundamental changes in the market for electricity across North America including changes in the framework for decisions about investment in generation capacity. In a restructured market the generator is no longer guaranteed a reasonable rate of return on assets; instead new investments will earn whatever the spot market or contract market will pay. The market price will be determined by the marginal cost of existing price setting units, the market structure, demand, and the cost of new capacity. Environmental regulations may have a significant impact on that price. This paper summarizes the principal features of restructured electricity markets and their implications for the future price of electricity and for the future of nuclear power, using the emerging rules for the Ontario electricity market as an example.

Suggested Citation

  • Donald N. Dewees, 1999. "The Future of Nuclear Power in A Restructured Electricity Market," Working Papers dewees-99-01, University of Toronto, Department of Economics.
    • Handle: RePEc:tor:tecipa:dewees-99-01
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    File URL: https://www.economics.utoronto.ca/public/workingPapers/UT-ECIPA-DEWEES-99-01.pdf
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    References listed on IDEAS

    as
    1. Helm, Dieter & Jenkinson, Tim, 1997. "The Assessment: Introducing Competition into Regulated Industries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(1), pages 1-14, Spring.
    2. Barker, Jr.J. & Tenenbaum, B. & Woolf, F., 1997. "Governance and Regulation of Power Pools and System Operators. An International Comparison," Papers 382, World Bank - Technical Papers.
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    Cited by:

    1. Rosenbloom, Daniel & Meadowcroft, James, 2014. "The journey towards decarbonization: Exploring socio-technical transitions in the electricity sector in the province of Ontario (1885–2013) and potential low-carbon pathways," Energy Policy, Elsevier, vol. 65(C), pages 670-679.

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    More about this item

    Keywords

    electric utilities; electricity restructuring; nuclear power; nuclear generation; air pollution; emission trading; Ontario; spot market;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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