‘Market Power’ Cited in Run-Up of Energy Prices
- Share via
The biggest reason Californians paid $7 billion more for electricity in the summer of 2000 was the ability of power suppliers to ask for and get high prices, says a new study by university economists.
Severin Borenstein and James Bushnell of the UC Energy Institute and Frank Wolak of Stanford University concluded that 59% of the run-up in power prices was attributable to “market power.”
In analyzing data from June 1998 to October 2000, the economists found that 21% of the increase was due to production costs, such as rising natural gas prices.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
