Simulation Scenarios for the Western Electricity Market

This paper was written to promote discussion at a workshop on alternative electricity markets in California. Workshop participants will discuss changes on both the supply side and the demand side of the wholesale market. On the supply side, participants will comment on incentives to promote more timely investments by private developers. They will also discuss the appropriate role of the California Power Authority. On the demand side, participants will discuss ways to encourage electricity consumers to participate more actively in wholesale markets, and they will comment on the impact of the legislated freeze in retail rates.