June 20, 2017

Brattle Economists Contribute Two Articles to Energy Regulation Quarterly

Brattle economists have contributed two articles to the current issue of Energy Regulation Quarterly, a journal that provides a forum for debate and discussion on issues surrounding the regulated energy industries in Canada.

“Reforming Ontario’s Wholesale Electricity Market: The Costs and Benefits” provides a review of a recent report authored by Brattle economists examining the net benefit that Ontario could realize through implementation of a locational energy market, improving the system’s operating flexibility, and the introduction of an incremental capacity auction for maintaining resource adequacy. Prepared for the Independent Electricity System Operator (IESO), the report found that the estimated benefits of the “Market Renewal” initiative significantly outweigh estimated implementation costs, with a present value of net benefits ranging from $2.2 billion to $5.2 billion over the next decade. Based on these results, the IESO and its stakeholders have decided to proceed with developing a revised market design in a manner that will maximize available benefits, mitigate implementation risks, and prepare the province’s wholesale power market for meeting future customers’ needs while supporting public policy priorities. The article is authored by Brattle Principals Johannes Pfeifenberger, Kathleen Spees, and Judy Chang, Associate Walter Graf, and Senior Associate Mariko Geronimo Aydin.

Brattle Principals Ahmad Faruqui and Sanem Sergici authored the article, “Do Manufacturing Firms Relocate in Response to Rising Electric Rates?,” which investigates whether U.S. industrial manufacturing customers faced with rising electric rates relocate to lower-cost regions. Through examining the variations in industrial rates across the U.S., the Drs. Faruqui and Sergici find that industrial rates vary considerably across the U.S. and manufacturing firms do not relocate in response to rising electric rates. The authors expect similar conclusions to be drawn from a review of Canadian data as well.

For more information, please visit the Energy Regulation Quarterly website.

Associated Experts
Chang for web
Judy Chang is an energy economist and policy expert with a background in electrical engineering. She has 20 years of experience in advising clients in transmission, resource, and strategic planning. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Faruqui web
Dr. Faruqui specializes in smart grid strategies involving the consumer. His expertise includes demand forecasting, innovative rate design, energy efficiency, demand response, advanced metering infrastructure, technology assessment, and cost-benefit analysis. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
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Mr. Pfeifenberger is an economist with a background in electrical engineering and over twenty-five years of experience in the areas of regulatory economics and finance. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Sergici 102
Dr. Sergici assists electric utilities, regulators, and wholesale market operators in their strategic questions related to energy efficiency, demand response, and customer behavior in the context of Smart Grid. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
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Dr. Kathleen Spees has expertise in wholesale electricity and environmental policy design and analysis. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
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Senior Associate
Ms. Geronimo Aydin addresses electricity industry issues and provides economic assessments in the context of strategic and resource planning, regulatory proceedings, and litigation. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
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