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Resource Adequacy: Should Regulators Worry?

Author

Listed:
  • Bejarano Hernan D.

    (Penn State)

  • Clifner Lance

    (August Systems Inc.)

  • Johnston Carl

    (George Mason University)

  • Rassenti Stephen

    (Chapman University)

  • Smith Vernon L.

    (Chapman University)

Abstract

Regulators have proposed various institutional alternatives to secure network resource adequacy and reasonably priced electric power for consumers. These alternatives prompt many difficult questions: Does the development of Demand Response reduce the need for new capacity? How effectively can a government-mandated Capacity Market foster efficient investment? How does centralized generator commitment (with revenue guarantees) compare to a system in which Generators voluntarily commit themselves with no revenue guarantees? If exclusive distribution contracts were replaced by unregulated retail competition, what would be the effects on investment and market prices? We use laboratory experiments to address these questions.

Suggested Citation

  • Bejarano Hernan D. & Clifner Lance & Johnston Carl & Rassenti Stephen & Smith Vernon L., 2012. "Resource Adequacy: Should Regulators Worry?," Review of Network Economics, De Gruyter, vol. 11(4), pages 1-35, December.
    • Handle: RePEc:bpj:rneart:v:11:y:2012:i:4:p:1-35:n:4
    DOI: 10.1515/1446-9022.1391
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    References listed on IDEAS

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    7. John Kwoka, 2008. "Restructuring the U.S. Electric Power Sector: A Review of Recent Studies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 32(3), pages 165-196, May.
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    Full references (including those not matched with items on IDEAS)

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