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from : vkaminski @ aol . com
full - name : vkaminski
message - id :
date : sun , 1 oct 2000 07 : 40 : 46 edt
subject : abstract
to : deng @ isye . gatech . edu
mime - version : 1 . 0
content - type : multipart / mixed ; boundary = " part 2 _ 15 . 9 e 45 a 9 f . 27087 cbe _ boundary "
x - mailer : aol 3 . 0 16 - bit for windows sub 86
shijie ,
i am sending you the abstract for my informs presentation .
vince
* * * * *
the last three years were characterized by exceptionally high volatility of
the power prices in the us markets . the market developments have created a
number of unique challenges for energy industry economists . one immediate
question we have to answer is how to measure volatility of energy prices .
although we can all agree that the prices in the power markets are
characterized by high variability , the traditional measures used in financial
economics ( annualized standard deviation of log price returns ) may not fit
well electricity prices . the second challenge is to explain the sources of
high price volatility and to answer the question to what extent it can be
attributed to problems that can be addressed in the long run . such problems
include flaws in market design that allow some market participants to abuse
market power , limited availability and / or unequal access to transmission ,
temporary shortages of generation capacity . some factors underlying high
volatility of electricity prices may be of permanent nature and may be a
necessary price to pay for increased market efficiency and expanded customer
choice .
- informs . doc
fwd : abstract
return - path :
from : vkaminski @ aol . com
full - name : vkaminski
message - id :
date : sun , 1 oct 2000 07 : 40 : 46 edt
subject : abstract
to : deng @ isye . gatech . edu
mime - version : 1 . 0
content - type : multipart / mixed ; boundary = " part 2 _ 15 . 9 e 45 a 9 f . 27087 cbe _ boundary "
x - mailer : aol 3 . 0 16 - bit for windows sub 86
shijie ,
i am sending you the abstract for my informs presentation .
vince
* * * * *
the last three years were characterized by exceptionally high volatility of
the power prices in the us markets . the market developments have created a
number of unique challenges for energy industry economists . one immediate
question we have to answer is how to measure volatility of energy prices .
although we can all agree that the prices in the power markets are
characterized by high variability , the traditional measures used in financial
economics ( annualized standard deviation of log price returns ) may not fit
well electricity prices . the second challenge is to explain the sources of
high price volatility and to answer the question to what extent it can be
attributed to problems that can be addressed in the long run . such problems
include flaws in market design that allow some market participants to abuse
market power , limited availability and / or unequal access to transmission ,
temporary shortages of generation capacity . some factors underlying high
volatility of electricity prices may be of permanent nature and may be a
necessary price to pay for increased market efficiency and expanded customer
choice .
- informs . doc