pwp 044r an empirical analysis of the potential for market power in california s electricity industry severin borenstein and james bushnell december 1998 this paper is part working papers series program on workable energy regulation a university institute multicampus research unit located berkeley campus 2539 channing way 94720 5180 www ucei edu ca abstract using historical cost data we simulate after deregulation as static cournot with competitive fringe our model indicates that under pre structure generation ownership there significant high demand hours particularly fall early winter months when hydroelectric output at its lowest level relative to results also show two most important factors determining extent severity are
