This book examines the economics of an industry that has become a
critical component of modern life - the electric utility industry.
The public nature of electricity has affected the development of
the industry, both private and public. While this book focuses on
private utilities, it recognizes the potential for a resurgence of
public ownership. The objective of the book is to examine factors
that will affect the evolution of markets for power. Of critical
importance is the role of information, which is required for making
and evaluating decisions in power markets. This book demonstrates
that utilities can exploit information as a source of market power,
impeding the development of more competitive and efficient markets.
To a large extent the source of the utilities' market power is the
ability to specify computer models used in the planning, pricing
and operation of markets for electricity. A number of concepts
related to the use and control of information and models are
developed in this book.
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