Mothballing Old Power Plants In Texas

Here’s a great example of the competitive, market process dynamic at work. According to this article, American Electric Power is planning to retire, or mothball, 16 of its older gas-fired plants in Texas. The article says it well: The decision to deactivate the plants is a result of the introduction of electricity deregulation and competition … More Mothballing Old Power Plants In TexasMore Mothballing Old Power Plants In Texas

What’s New With The California Wholesale Price Cap?

I haven’t focused on it much here, but the FERC had set the wholesale “soft price cap” in California to rise from $91.87 to $250 today. As this article reports, the new price cap has been delayed a month to allow officials to incorporate changes from a computer test of manipulation possibilities. Of course, this … More What’s New With The California Wholesale Price Cap?More What’s New With The California Wholesale Price Cap?

Thanks To Arnold Kling

While I was away, Arnold picked up on a couple of my posts in the context of a commentary on Krugman’s column last week about the California energy crisis. I think Arnold is absolutely right to say that “most economists would predict that California’s experience is not the shape of things to come. Even among … More Thanks To Arnold KlingMore Thanks To Arnold Kling


After the Coase workshop, most of the attendees stuck around for the annual conference of the International Society for New Institutional Economics, which had lots of great papers on electricity, so I was thrilled. … More Isnie

Where Have I Been?

In a hotel that only has dialup, that’s where! Last week I was honored and delighted to be on the faculty of the Ronald Coase Institute’s Workshop on Institutional Analysis. The workshop gathers together 25-30 economists from developing countries, either graduate students or young Ph.D.s, who are doing research on formal and/or informal economic institutions … More Where Have I Been?More Where Have I Been?