Consumer Price Effects of Deregulated Electric Generation Markets: The Case of Ohio and the Midwestern United States

This study investigates the effects of electric utility restructuring on (a) the cost of generated electricity, (b) increases in the regulated portions of customers' bills, and (c) changes in customers’ average total electricity price in restructured states relative to similar states that remained regulated. The results across the tests indicate that restructured generation markets benefited consumers through lower price growth or price declines. However, in Ohio, increases in charges authorized by regulators offset savings from competitive wholesale generation markets.