American Economic Association Panel Presentation by Ted Kury
January 5 - 7, 2012
Chicago, Illinois USA
Audience members listened as PURC Director of Energy Studies Ted Kury presented his paper, "The Price Effects of Independent System Operators in the United States Electricity Market." The paper assesses whether regional transmission organizations (RTOs) and independent system operators (ISOs) have had any impact on the price of electricity in the U.S. Mr. Kury delivered his presentation as a member of a panel sponsored by the American Economic Association during the Allied Social Science Association’s annual meeting in Chicago.
In 1996, the Federal Energy Regulatory Commission sought to "remove impediments to competition in the wholesale bulk power marketplace and to bring more efficient, lower cost power to the nation’s electricity consumers" through a series of market rules. A product of these rules was the establishment of regional transmission organizations (RTOs) and independent system operators (ISOs), charged with facilitating equal access to the transmission grid for electricity suppliers. Whether these changes in market structure have succeeded in achieving the FERC’s goal to provide "lower cost power to the nation’s electricity consumers" remains an open question.