2 For a discussion of the changing structure of the electricity industry, see L.S. Hyman, America’s Electric Utilities: Past, Present and Future (Arlington, VA: Public Utilities Reports, Inc., 1994), and Energy Information Administration, The Changing Structure of the Electric Power Industry: An Update, DOE/EIA-0562(96) (Washington, DC, December 1996).

3 A supplier who is in the market is one who is able to find customers at the prices it is offering. During a low demand period there could be many suppliers who are unable to sell any output and, therefore, will have no impact on the price.

4 See Energy Information Administration, Annual Energy Outlook 1998, DOE/EIA-0383(98) (Washington, DC, December 1997), “Electricity Pricing in a Competitive Environment,” pp. 20-23.

5 The Electricity Market Model (EMM) submodule of the National Energy Modeling System (NEMS) represents the supply and demand for electricity in 13 regions based on the regions and selected subregions of the North American Electric Reliability Council (NERC).

6 Energy Information Administration, Petroleum Marketing Monthly, DOE/EIA-0380(98/02) (Washington, DC, February 1998).

7 Energy Information Administration, Electricity Prices in a Competitive Environment: Marginal Cost Pricing of Generation Services and Financial Status of Electric Utilities, DOE/EIA-0614 (Washington, DC, August 1997).

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