The Design of Tests for Horizontal Market Power in Market-Based Rate Proceedings

✍ Scribed by James Bohn; Metin Celebi; Philip Hanser

• Book ID: 104373837
• Publisher: Elsevier Science
• Year: 2002
• Tongue: English
• Weight: 998 KB
• Volume: 15
• Category: Article
• ISSN: 1040-6190
• DOI: 10.1016/s1040-6190(02)00293-2

✦ Synopsis

By incorporating demand characteristics, transmission limitations, and a behavioral model of the decision to exercise market power, FERC's SMA Order is an improvement over the previous hub-and-spoke test. However, it appears that the simple mechanical application of the SMA is unlikely to yield satisfactory results.