EBF 483Introduction to Electricity Markets
This course is designed to teach students about the structure of the electricity industry, the regulatory institutions that oversee the industry, and the new market institutions that have been put into place since electricity restructuring. Much of the focus will be on the U.S. electricity industry. Since Pennsylvania has been a national leader in electricity restructuring, we will place particular emphasis on events in the Mid-Atlantic region, but will also discuss other market structures in the U.S. and in other countries. Specific topics covered will include cost models for power generation, transmission and distribution; rate of return regulation for electric utilities; the process of electricity restructuring and creation of electricity markets; Locational Marginal Pricing of electric energy; financial risk management in electric power; and detecting and mitigating market power.