Regulation and Deregulation in Public Utilities
Explores historical basis for regulation of public utilities, with focus on energy utilities, from an economic and legal perspective. Application of standard monopoly microeconomics leading to rate of return regulation is developed leading to discussion of evolution of economic thought on electric power system economics and changes in some states to “deregulate” the regulation of electricity markets. Case studies of recent developments in these markets, market clearing entities (e.g. PJM), basis for location marginal pricing, measures of market power, and pricing of capacity and reliability. Pre-requisites: ECON205D and 210D. One course.