The Evolution of the Market for Wholesale Power

R. Andrew Butters, Daniel F Spulber

Research output: Working paper


The authors investigate the convergence in wholesale electricity day ahead spot prices over the period following the open access of transmission by FERC order 000; specifically 2002–2012. By implementing correlation, Granger causality, and co-integration tests, as well as principal component and factor analysis the authors conclude that the regional wholesale markets have begun to converge to a national market. The authors propose the common trend test of Stock and Watson (1988) as method of determining the extent of the market. Despite this pattern of convergence, there does still appear to be constraints that segment the market along interconnections.
Original languageEnglish (US)
Number of pages47
StatePublished - Feb 2 2013


Dive into the research topics of 'The Evolution of the Market for Wholesale Power'. Together they form a unique fingerprint.

Cite this