LMP Market Design

LMP Market Design

Scott Harvey - Local Marginal Pricing Market Power

Western Power Crisis and the California Electricity Market


The papers in this section discuss the problems with the California electricity market design implemented in 1998 and how these market design flaws combined with adverse market fundamentals (low hydro generation, nuclear plant outages, and high loads) and poor public policy choices to create the Western Power Crisis.

Scott M. Harvey and William W. Hogan, "Empirical Analysis of the Exercise of Market Power in California Electricity Markets," International Industrial Organization Conference, Industrial Organization Society, Atlanta Georgia, April 9, 2005.

Scott M. Harvey, William W. Hogan and Todd Schatzki, "A Hazard Rate Analysis of Mirant's Generating Plant Outages in California," January 2, 2004.

Data for Hazard Rate Analysis

Susan L. Pope, "California Electricity Price Spikes, An Update on the Facts," December 9, 2002.

Scott M. Harvey and William W. Hogan, "Market Power and Market Simulations," July 16, 2002.

Scott M. Harvey and William W. Hogan, "Identifying the Exercise of Market Power in California," December 28, 2001.

Scott M. Harvey and William W. Hogan, "Further Analysis of the Exercise of Market Power in the California Electricity Market," November 21, 2001.

Scott M. Harvey and William W. Hogan, "On the Exercise of Market Power Through Strategic Withholding in California," April 24, 2001.

Scott M. Harvey, John D. Chandley and William W. Hogan, "Electricity Market Reform in California," November 22, 2000.

Scott M. Harvey and William W. Hogan, "Issues in the Analysis of Market Power in California," October 27, 2000.

Scott M. Harvey and William W. Hogan, "California Electricity Prices and Forward Market Hedging," October 17, 2000.

Scott M. Harvey and William W. Hogan, "Comments on the Congestion Management Proposals of the California ISO," August 31, 2000

John D. Chandley, Scott M. Harvey and William W. Hogan, "Congestion Management in California," August 31, 2000.

William W. Hogan, "WEPEX: What's Wrong With Least Cost?" Public Utilities Fortnightly, January 1, 1998.