04.Figures on California Electricity Market (092110)

04.Figures on California Electricity Market (092110) -...

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Unformatted text preview: HANDOUT ON THE CALIFORNIA ELECTRICITY CRISIS Wholesale Electricity Prices in California from April 1998-November 2000 750 Price in Power Exchange ($/MWh) 500 250 0 0 1998 1999 Time 2000 Average Price-Marginal Cost (Markup) for the 5 Firms in CA: Hour 5-6pm 5 00 PriceCost Margin 4 00 ($/MWh) 3 00 2 00 1 00 0 98Q2 98Q3 98Q4 99Q1 99Q2 99Q3 99Q4 00Q1 00Q2 00Q3 00Q4 -100 Time Were Prices in 2000 as High as Joint Monopoly Prices? 2000 Competitive, Actual, and Joint Monopoly Prices 0 00J 200 Price ($/MWh) 400 600 800 1000 F M A M J Month J A S O N Perfectly Competitive Actual Price Joint Monopoly Competitive Behavior in the California Electricity Market Before and After June 2000 350 300 Markup Markup on Last Unit (P-c in $/MWh) 250 200 150 100 50 0 -20 0 25 50 Inframargin (Instrumented -P'q) 75 Source: Puller, PWP-080, 2004. ...
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This note was uploaded on 05/01/2011 for the course ECON 689 taught by Professor Staff during the Spring '08 term at Texas A&M.

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04.Figures on California Electricity Market (092110) -...

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