Regulation and Deregulation in Public Utilities
Class explores historical basis for regulation of public utilities from an economic/legal perspective. Application of standard monopoly microeconomics leading to rate of return regulation is developed. This background sets stage for evolution of economic thought on electric power system economics and changes in some states, to “deregulate,” the electricity markets. Class will explore case studies of developments in these markets, including evolution of regional market clearing entities like PJM, the basis for location marginal pricing, measures of market power, and pricing of capacity/reliability. Graduate pairing for ECON328; graduate students will receive additional writing assignments. One course / 3 units.