Reformas Regulatórias e Reestruturação no Setor Elétrico Americano: O que deu errado na Califórnia?(Regulatory Reforms and Restructuring of the US Electricity Sector: What happened in Califórnia?)


The paper examines the economic and regulatory factors that led to an explosion in the wholesale power prices, supply shortages, and utility insolvencies in California’s electricity sector. A necessary first step in determining the lessons learned from the California electricity crisis is a diagnosis of its causes. This requires a clear understanding of the federal and state regulatory infrastructure that governs the US electricity supply industry. The structure of California’s restructured electricity sector and its performance are discussed. The effects on wholesale market prices are analyzed. The regulatory responses leading to utility credit problems and supply shortages are also discussed. The paper concludes with a set of lessons from the California electricity crisis.



Date of this Version

June 2005