Pricing in the California Power Exchange Electricity Market: Should California Switch from Uniform Pricing to Pay-as-Bid Pricing?
Any belief that a shift from uniform to as-bid pricing would provide power purchasers substantial relief from soaring prices is simply mistaken. The immediate consequence of its introduction would be a radical change in bidding behavior that would introduce new inefficiencies, weaken competition in new generation, and impede expansion of capacity.
|Date of creation:||27 Jan 2001|
|Date of revision:||27 Jan 2001|
|Contact details of provider:|| Postal: Economics Department, University of Maryland, College Park, MD 20742-7211|
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