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Did the expiration of retail price caps affect prices in the restructured Texas electricity market?

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  • Kang, Linhong
  • Zarnikau, Jay

Abstract

On January 1, 2007, the Electric Reliability Council of Texas (ERCOT) market became the first restructured market in the US to completely remove caps on the prices which could be charged to residential energy consumers by the retailers associated with the traditional or incumbent utility service providers. Our analysis suggests that the expiration of the price-to-beat (PTB) price caps may have led to a reduction in the average prices charged by competitive retail electric providers (REPs).

Suggested Citation

  • Kang, Linhong & Zarnikau, Jay, 2009. "Did the expiration of retail price caps affect prices in the restructured Texas electricity market?," Energy Policy, Elsevier, vol. 37(5), pages 1713-1717, May.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:5:p:1713-1717
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    References listed on IDEAS

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    1. Zarnikau, Jay, 2005. "A review of efforts to restructure Texas' electricity market," Energy Policy, Elsevier, vol. 33(1), pages 15-25, January.
    2. Zarnikau, Jay & Whitworth, Doug, 2006. "Has electric utility restructuring led to lower electricity prices for residential consumers in Texas?," Energy Policy, Elsevier, vol. 34(15), pages 2191-2200, October.
    3. Lave, Lester & Apt, Jay & Blumsack, Seth, 2007. "Deregulation/Restructuring Part I: Reregulation Will Not Fix the Problems," The Electricity Journal, Elsevier, vol. 20(8), pages 9-22, October.
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    Cited by:

    1. Tsai, Chen-Hao & Tsai, Yi-Lin, 2018. "Competitive retail electricity market under continuous price regulation," Energy Policy, Elsevier, vol. 114(C), pages 274-287.
    2. Eero Lehto, 2010. "Electricity prices in the Finnish retail market," Working Papers 259, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    3. Hartley, Peter R. & Medlock, Kenneth B. & Jankovska, Olivera, 2019. "Electricity reform and retail pricing in Texas," Energy Economics, Elsevier, vol. 80(C), pages 1-11.
    4. McDaniel, Tanga M. & Groothuis, Peter A., 2012. "Retail competition in electricity supply—Survey results in North Carolina," Energy Policy, Elsevier, vol. 48(C), pages 315-321.
    5. Li, Kai & Long, Cheryl & Wan, Wei, 2019. "Public interest or regulatory capture: Theory and evidence from China’s airfare deregulation," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 343-365.
    6. Esplin, Ryan & Davis, Ben & Rai, Alan & Nelson, Tim, 2020. "The impacts of price regulation on price dispersion in Australia's retail electricity markets," Energy Policy, Elsevier, vol. 147(C).
    7. Swadley, Adam & Yücel, Mine, 2011. "Did residential electricity rates fall after retail competition? A dynamic panel analysis," Energy Policy, Elsevier, vol. 39(12), pages 7702-7711.
    8. Lehto, Eero, 2011. "Electricity prices in the Finnish retail market," Energy Policy, Elsevier, vol. 39(4), pages 2179-2192, April.
    9. Holburn, Guy L.F., 2012. "Assessing and managing regulatory risk in renewable energy: Contrasts between Canada and the United States," Energy Policy, Elsevier, vol. 45(C), pages 654-665.

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