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Transmission Policy in the United States

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Listed:
  • Joskow, P.L.

Abstract

This paper provides an overview of the development of electric power transmission access, pricing and investment policies in the U.S. over the last 15 years and evaluates the current state of those policies. It includes a discussion of pre-liberalisation transmission access and pricing policies, the prevailing basic transmission access and pricing rules contained in Orders 888 and 889, FERC’s policies regarding Regional Transmission Organizations (RTO) as reflected in Order 2000, and FERC’s subsequent Standard Market Design (SMD) proposal. PJM’s market rules and transmission pricing, planning and investment policies are reviewed as an articulation of FERC’s RTO and SMD visions.

Suggested Citation

  • Joskow, P.L., 2004. "Transmission Policy in the United States," Cambridge Working Papers in Economics 0454, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0454
    Note: CMI,IO
    as

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    File URL: http://www.econ.cam.ac.uk/electricity/publications/wp/ep54.pdf
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    References listed on IDEAS

    as
    1. Paul Joskow & Jean Tirole, 2005. "Merchant Transmission Investment," Journal of Industrial Economics, Wiley Blackwell, vol. 53(2), pages 233-264, June.
    2. Joskow, Paul L, 1974. "Inflation and Environmental Concern: Structural Change in the Process of Public Utility Price Regulation," Journal of Law and Economics, University of Chicago Press, vol. 17(2), pages 291-327, October.
    3. Paul L. Joskow, 2006. "Incentive Regulation for Electricity Networks," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(2), pages 3-9, 07.
    4. Paul L. Joskow, 2003. "The Difficult Transition to Competitive Electricity Markets in the U.S," Working Papers 0308, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
    5. Joskow, Paul L & Tirole, Jean, 1999. "Transmission Rights and Market Power on Electric Power Networks I: Financial Rights," CEPR Discussion Papers 2093, C.E.P.R. Discussion Papers.
    6. Paul Joskow & Jean Tirole, 2004. "Competitive Electricity Markets," Working Papers EP53, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Electricity; Transmission; Regulation; Deregulation;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • K2 - Law and Economics - - Regulation and Business Law

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