Cleveland State University EngagedSchlarship@CSU Urban Publicatins Maxine Gdman Levin Cllege f Urban Affairs 8-2014 Understanding Ohi's Electricity Markets: Characteristics, Structure and Price Iryna Lendel i.lendel@csuhi.edu Andrew R. Thmas Cleveland State University, a.r.thmas99@csuhi.edu Hw des access t this wrk benefit yu? Let us knw! Fllw this and additinal wrks at: https://engagedschlarship.csuhi.edu/urban_facpub Part f the Urban Studies and Planning Cmmns Repsitry Citatin Lendel, Iryna and Thmas, Andrew R., "Understanding Ohi's Electricity Markets: Characteristics, Structure and Price" (2014). Urban Publicatins. 0 1 2 3 1180. https://engagedschlarship.csuhi.edu/urban_facpub/1180 This Reprt is brught t yu fr free and pen access by the Maxine Gdman Levin Cllege f Urban Affairs at EngagedSchlarship@CSU. It has been accepted fr inclusin in Urban Publicatins by an authrized administratr f EngagedSchlarship@CSU. Fr mre infrmatin, please cntact library.es@csuhi.edu.
Understanding Ohi s Electricity Markets: Characteristics, Structure and Price Prepared by: The Urban Center, Levin Cllege, Cleveland State University Prepared fr: The Ohi Manufacturers Assciatin August 2014
Navigating the Electricity Market: What a Manufacturer Needs t Knw Hw t simplify the cmplexities: What are the cmpnents f the price? What factrs influence each cmpnent? Hw can the cnsumer influence these factrs? Wh are the key players in the market, and what are their functins? What cntrls the market: Physical infrastructure Financial mdels Regulatry envirnment Ohi Electricity Markets: 2
Navigating the Electricity Market: What a Manufacturer Needs t Knw Physical Infrastructure Cmpnents f the Price Financial Mdels Key Players in the Market & Their Functins Factrs Influencing Each Cmpnent Cnsumer Influence n these Factrs Regulatry Envirnment Ohi Electricity Markets: 3
Electricity as a Cmmdity: Physical Cmpnents Influencing Price Security delivery f required vlume f electrns with minimal interruptin Quality delivery f electrns with prper phase, frequency Timing delivery f electrns at the time needed Lcatin delivery f electrns t desired lcatins Generatin Capability status f capacity t generate the lad sufficient t respnd t peak demands Transmissin Cngestin status f capacity t transmit desired lad t desired lcatin at any given time (impedance) Ohi Electricity Markets: 4
Electricity as a Cmmdity: Physical Cmpnents Influencing Price Timing Lcatin Quality Generatin Capability Security Electricity as a Cmmdity Transmissin Cngestin Ohi Electricity Markets: 5
Principal Cmpnents f Electricity Energy is cmmnly used t describe the generatin cmpnent Cannt be cmpletely separated frm ther cmpnents Capacity refers t the standby generatin held in reserve fr peak pwer demands Electricity cannt be stred easily Delivery includes transmissin and distributin Transmissin: high-vltage, lng-distance, lwer lsses Distributin: lw-vltage, shrt-distance, higher lsses Energy Output f generatr + lsses (greater with cngestin) Majrity f ttal energy cst Vlatile yet liquid Cntinuusly determined by market frces Csts are manageable Capacity Cst t supply peak + reserve margin Smaller prtin f ttal energy cst but increasing Vlatile based n auctin Determined by market frces ver a year + sme regulatin Delivery Cst f mving energy frm generatr t meter Smaller prtin f ttal energy cst but increasing Lw vlatility; Tariff-based Determined predminantly by regulatry bdies and ISOs Csts are less manageable Ohi Electricity Markets: 6
Electricity as a Cmplex Cmmdity Energy is nly arund half f the ttal cst f the cmmdity Typically line lsses will be subsumed int the energy price Delivery includes transmissin (5%) and distributin (18%) Ancillary charges refer t RTO charges t manage the grid and the whlesale market, amng ther things (3%) Maintaining dispatchable capacity in Ohi has been a small but grwing cmpnent (3%) Nn-by-Passible Riders are special payments fr expenditures that typically reflect scial and ecnmic develpment prgrams, smetimes t address market failures (19%) Distributin 18% Transmissin 5% Apprximate Structure f Electricity Price in Ohi, 2013 (Surce: Scit Energy) NBP Riders 19% Lses 2% Ancillary 3% Energy 50% Capacity 3% Cmpnents f Electricity as a Cmplex Cmmdity Energy and lsses Capacity Transmissin Distributin Ancillary Services Ohi Electricity Markets: 7
Regulatry & Management Side Market Prducts Supply Side Energy Capacity Transmissin Distributin Ancillary Services Demand Side Ohi Electricity Markets: 8
Electricity Market 101 The electricity market allcates electricity thrugh the principles f supply and demand. Each cmpnent f electricity has separate markets, and sme such markets are cmpetitive. Electricity Demand: Individual demand can be satisfied thrugh self-generatin, thrugh purchase f electricity n the market, r thugh default services frm the EDUs. The demand fr electricity is inelastic. There are n easy substitutes fr electricity as a cmmdity, and electricity cannt be easily stred t respnd t peak demand. Electricity Supply: Generatin: the aggregate supply is the sum f individual supplies f electricity generatrs, tgether with PJM acquired demand respnse cmmitments. The infrastructure and regulatins enable Ohi t imprt electricity frm utside f Ohi and even frm utside f PJM. Capacity: stand-by generatin - refers t generatin capability that can be called upn in the future with shrt ntice t satisfy peak demand. Capacity markets are determined n the base residual and incremental ptins as early as three years in advance. Delivery: Transmissin f electricity is limited by physical infrastructure and transmissin cngestin. The supply fr electricity is inelastic n a shrt run and therefre requires stand-by capacity t satisfy peak demand. Transmissin markets exist thrugh the purchase f Financial Transmissin Rights. Ohi Electricity Markets: 9
Electricity Regulatin 101 Ohi electricity markets were restructured in 2001 Generatin was deregulated, creating a market fr cmpetitive retail electricity service (CRES) prviders Distributin and transmissin cntinue t be subject t Ohi regulatin by the Public Utility Cmmissin f Ohi Utilities cntinue t ffer packaged generatin and deliver thrugh a regulated standard service ffer as the default ptin fr electricity cnsumers Self generatin became pssible, with sme frms susceptible t net metering in 2008 (frzen in 2014) Electric distributin cntinued t be subject t Ohi regulatin thrugh PUCO apprved Electric Distributin Cmpany (EDU) tariffs Interstate transmissin and sale f electricity is subject t federal regulatin thrugh the Federal Energy Regulatry Cmmissin The FERC has delegated management f whlesale pwer sales and transmissin t independent Reginal Transmissin Organizatins (RTO) Ohi utilities have chsen t be part f the Pennsylvania, Jersey, Maryland RTO, cmmnly knwn as PJM Ohi Electricity Markets: 10
Players n the Electricity Market Regulatry & Management Side Federal Energy Regulatry Cmmissin (FERC) Reginal Transmissin Organizatin (RTO) Public Utility Cmmissin f Ohi (PUCO) Supply Side Utility Cmpanies Investr Owned Utilities (IOUs) Demand Side Residential Users Public Utilities; Municipalities Electric Cperatives Cmpetitive Retail Electricity Service (CRES) Prviders Self-generatrs (Nt included in the market) Market Prducts Cmmercial Users Industrial Users Ohi Electricity Markets: 11
Restructured Electricity Markets Whlesale Market Retail Market Surce: Figure 1. Schematic f deregulated whlesale and retail electricity markets. Hausman, E., Hrnby, R., and Smith A. Bilateral Cntracting in Deregulated Electricity Markets. Synapse Energy Ecnmics, Inc. April, 2008. Ohi Electricity Markets: 12
Main Players in Restructured Markets Generatin Owners unregulated cmpanies that generate electricity and sell it n the market Electric Distributin Cmpanies (EDU) lcal distributin and transmissin arms f the incumbent utilities, remain fully subject t PUCO regulatin Standard Service Offer Prviders default service prvided by the EDUs if a custmer did nt chse a cmpetitive supplier Cmpetitive Retail Electricity Suppliers (CRES prviders) generates r acquires electricity n the whlesale market and resells it n the retail market in Ohi Public Pwer and Electric Cperatives public utilities capable f generating and distributing electricity Aggregatrs rganizatins that grup municipalities tgether t aggregate lad and t create leverage in acquiring whlesale pwer fr resale t cmmunity residents Demand Respnse Prviders cmpanies that cllect demand respnse cmmitments and sell it t PJM under prgrams t reduce peak lad requirements Brkers - cmpanies that rganize auctins fr retail lads f custmers with large lads Custmers Large cmmercial r industrial custmers thse that buy large vlumes f electricity and as a result have sme leverage in buying pwer Residential and small cmmercial custmers best leverage is thrugh aggregatin Standard service ffer custmers custmers that receive electricity under default services with electric distributin cmpany Ohi Electricity Markets: 13
Selling Energy n the Whlesale and Retail Markets Energy is prcured by energy retailers frm generatin wners and energy traders fr resale n the retail market r fr resale int Standard Service Offer (SSO) markets Cmmercial Retail Electricity Service (CRES) prviders perate n bth the whlesale and retail markets : they are buyers n the whlesale market and sellers n the retail markets. Electrns may nt physically mve frm CRES prvider t the end user; electrns are fungible, and they are either dispatched directly frm the lad prvider r they are delivered t the end user thrugh a trade. The whlesale market has been created as a financial mechanism fr cmpetitive pricing n electricity lad Gal is fr the market price cnverge with the marginal cst f generatin and transmissin Lcatinal marginal pricing (LMP) algrithm is designed t accunt fr transmissin cngestin and t stimulate new generatin and transmissin as needed. In practice, it is uncertain if it des. Retail markets represent the sales frm the CRES r SSO prviders directly t the end users SSO cntracts will generally be fixed rate and year t year. Large scale end users can financially hedge all r prtins f their electricity lad thrugh such CRES prducts as blck and index pricing. Transmissin cngestin charges are passed thrugh t the end users thrugh lcatinal marginal pricing (LMP) cnstruct In AEP territry, direct transmissin charges are passed thrugh by PJM n the CRES r SSO prvider bills. In ther Ohi territries, these charges are passed t custmers thrugh the EDU bill. Ohi Electricity Markets: 14
Effects n Electricity Markets: Three Cmpnents Physical Infrastructure Financial Mdels/Systems Regulatry and Management Envirnment Ohi Electricity Markets: 15
Tw Cntrls ver Energy Markets: Physical Infrastructure and Financial Mdels Physical Physical mvement f all electrns ccur thrugh 24/7 PJM dispatch system regardless f the financial mechanism t Financial btain the lad (bilateral cntract r the spt markets) Actual physical cngestin used in algrithm t develp Lcatinal Marginal Price (LMP) Market transactins Mst f lad is hedged thrugh mechanisms f futures and ptins n bilateral cntracts Residual amunt electricity requirements is balanced thrugh purchases n PJM-administered Day-Ahead and Real-Time whlesale spt markets Market price Bilateral cntracts: usually have fixed average price Spt markets: ligplistic single market clearing price fr all supply fr the relevant time perid Bth bilateral and spt market prices are based n the algrithm f LMP reflecting csts f histrical physical cngestin Ohi Electricity Markets: 16
Tw Cntrls ver Energy Markets: Physical Infrastructure and Financial Mdels Cntrls Over Energy Markets Physical Financial Mvement f Electrns 24/7 Hedging Risks via Mechanisms f Futures & Optins Generatin & Transmissin Cngestin Market Price in Bilateral Cntracts & Spt Markets Ohi Electricity Markets: 17
Prducts and Crrespnding Financial Mechanisms n Electricity Markets Energy: Lng-term markets NOT managed by PJM Bilateral cntracts Thrugh Intercntinental Exchange (ICE) and brkerage huses (using ver-the-cunter energy brkerage services) Spt Markets Day-Ahead Energy Market (DAEM) Real-Time Energy Market (RTEM) Rights t Generating Capacity: Capacity Market Synchrnized Reserve Market Day-Ahead Scheduling Reserve (DASR) Market Demand respnse and energy efficiency Transmissin: Financial Transmissin Rights (FTR) Markets: lng-term, annual, and mnthly auctins Ancillary Services: Regulatin Market Market in Spinning Reserve
Markets Prducts Prducts and Crrespnding Financial Mechanisms n Electricity Markets Energy Rights t Generating Capacity Transmissin Ancillary Services Lng-term Markets Capacity Market Financial Transmissin Rights (FTR) Market Regulatin Market Spt Markets Synchrnized Reserve Market Market in Spinning Reserve Day-Ahead Scheduling Reserve (DASR) Market Demand Respnse & Energy Efficiency Ohi Electricity Markets: 19
Hw Generatin Cmpanies Sell Pwer Operate as lad sellers n the whlesale and capacity markets Mst energy lad is sld t CRES r SSO Prviders thrugh lng term bilateral cntracts Sales are ver the cunter trades thrugh brkerage huses r thrugh Intercntinental Exchange (ICE) hubs Sale price frmed by prducer as a fuel cst plus price Sale price includes an estimated delivery cst based n histrical LMP data Sales cntracts are, in-turn, secured by fuel cntracts between wners f generatin and their fuel suppliers Sales price is influenced by the spt market price: the margin between the sales price under bilateral cntract and the spt market price is a subject f risk since all electricity is dispatched thrugh the spt market Residual lad is sld n spt markets (day ahead r real time) Single market clearing price (SMP) sets the price fr all sellers regardless f their bid ffer. The market clearing bid ideally reflects the marginal cst f generatin SMP is ligplistic price fr all except the seller with the last accepted ffer; his price is marginal Markets run by PJM using lcatinal marginal pricing algrithm that reflects bth cst f generatin and transmissin cngestin Capacity is sld thrugh PJM capacity auctins Single market clearing price is used t establish capacity csts Auctins are 3 years ahead, with supplemental auctins as needed t fill in increments Ohi Electricity Markets: 20
Final Cnsumers Markets Prducts Generatin Cmpanies Lad Capacity SSO/Default Service Prviders Bilateral Cntracts PJM Spt Market Auctins PJM Capacity Auctins CRES Prviders PJM Nn-shpping Manufacturing Cmpanies Shpping Manufacturing Cmpanies All Manufacturing Cmpanies Ohi Electricity Markets: 21
PJM Capacity Auctins (2013) 3 Years RPM May 20 Mnths September 10 Mnths July 3 Mnths February Structure Base Residual Auctin First Incremental Auctin Secnd Incremental Auctin Third Incremental Auctin Delivery Year Ohi Electricity Markets: 22
CRES Prviders Act as buyers n the whlesale markets and sellers n the retail market Maintain lad inventry acquired frm whlesale traders r wn generatin Cnsists primarily f bilateral cntracts hedged thrugh futures and ptins Use spt markets t make up shrtfalls r t beat wn generatin csts Maintain sales inventry based upn cntracts with their retail custmers Sales cntracts are matched t whlesale cntracts as best as pssible: smaller cntracts are bundled and matched t whlesale cntracts, larger cntracts culd be matched directly t whlesale cntracts Bilateral whlesale cntracts Are usually btained thrugh brkerage huses. Cntracts have different lads, start dates, and duratin shuld be bundled fr resale, unless matching retail sale Vary frm as shrt as few weeks r ne mnth t as lng as five years; theretically there is n duratin limit t the bilateral cntracts CRES Risk Strategy The daily demand lad delivered t retail custmers is balanced with daily supply lad residual f the lad between their daily demand and supply is purchased n the spt markets CRES risk strategy defines the desired level f balance between the inventry f lad and the inventry f retail bligatins CRES prvider bears the risks f cvering higher than estimated csts n ancillary services (frm PJM) and n higher than estimated LMP price affected by transmissin cngestin Can hedge thrugh Financial Transmissin Rights acquisitins Obtain custmers thrugh direct marketing f their services and therefre have additinal cst (cmpared t traditinal utility cmpanies) Ohi Electricity Markets: 23
Final Cnsumers Market Price Prduct Supply Cmpetitive Retail Electricity Suppliers (CRES) Generatin Cmpanies PJM Spt Markets Own Generatin Supply CRES Prviders Demand Manufacturing Cmpanies Ohi Electricity Markets: 24
Standard Service Offer (SSO) Prviders/ Default Service SSO is a mechanism that helps transitining t deregulated market Still has large market share f retail custmers in deregulated markets All utility cmpanies that prvide SSO are bligated t sell electricity by the tariff/price frmed frm tw cmpnents ( hybrid apprach ) part f the lad generated fr delivering under SSO will be prices n a cst plus basis and this part will be decreasing ver time part f the lad is based n the market mechanism f purchasing electricity thrugh the auctins and bilateral cntracts (market rate ptin - MRO) and this part will be grwing ver time Each utility cmpany has PUCO apprved Electric Stability Plan that defines the cst plus and MRO cmpnents and their changes ver time SSO prviders retain mst f their custmers frm the befre-deregulatin time (accrdingly SSO prviders have n marketing csts) Price f electricity under SSO reflects the hybrid apprach and therefre is nt a true market price Price f the default services serves as a market benchmark fr CRES prviders t beat Ohi Electricity Markets: 25
Final Cnsumers Benchmark Price Prduct Supply Standard Service Offer (SSO) Prviders/ Default Service SSO Auctin (fr each utility cmpany) Own Generatin Supply SSO/Default Service Demand (Price apprved by PUCO) Nn-shpping Manufacturing Cmpany Ohi Electricity Markets: 26
Electric Distributin Utilities (EDU) EDUs are the distributin arms f the incumbent vertically integrated Ohi utilities Als supply SSO lad thrugh Electric Stability Plan Incumbent utilities are in transitin twards unbundling their electricity generatin services frm transmissin & distributin services Distributin refers t the delivery f pwer n lw vltage wires frm the transmissin bus t the pint f delivery Distributin charges are regulated by the PUCO thrugh a tariff that is determined thrugh a PUCO regulatry dcket. It reflects the cst f the EDU s used and useful equipment and peratinal csts, plus a prfit, usually arund 10% In all but AEP territry, the EDU als charges fr transmissin. In AEP, transmissin charges are passed thrugh by PJM thrugh the CRES prvider Each EDU has a designated certified distributin and transmissin territry Additinal csts are recvered by EDUs thrugh nn-by-passable riders These usually represent the cst f scial prgrams, such as lw incme supprt, ecnmic develpment, r energy efficiency mandates under premise f a cmpensatin due t market failure market failures either reflect negative externalities (difference between lwer market csts and higher scial csts) r psitive externalities mst ften affiliated with ecnmic develpment prjects Sme riders hwever reflect csts that cannt be recvered thrugh the nrmal tariff prcedure because the equipment is nt used r useful. EDUs cmmnly seek recvery f such things as the cst f decmmissining f ld plants thrugh special riders Ohi Electricity Markets: 27
Electric Distributin Utilities (EDU) Synpsis Organizatinal Frm Publically Traded Cmpany Prduct Transmissin & Distributin (AEP-Distributin Only) May include generatin fr SSO Price Cnduit fr Nn-bypassable Riders Market Psitin Operate as a Mnply within Designated Territry Ohi Electricity Markets: 28
Cnsumer Chices fr Manufacturing Cmpany SSO default market (dn t d anything, yu inherit this prvider) Prvided by utility cmpanies t custmers that did nt chse t shp fr electricity Based upn Electric Stability Plan Usually higher price than CRES r aggregatr Buy frm CRES prvider Direct negtiatins, RFP, r brker Brker uses RFP r reverse auctin strategies, and is paid by supplier thrugh sale price add-n Prvide varius pricing prducts frm fixed rates t flating rates with the ability t lck in rates fr a prtin f cnsumptin Must beat SSO t cmpete Alternatives t EDU Self generatin Can build n site pwer, r have it built and perated by a third party Purchase pwer frm a municipal r rural cperative utility May avid distributin and nn-bypassable charges Direct purchase frm a generatr Bi-lateral cntract with generatr Uncmmn fr a small and mid sized manufacturing cmpany due t high indirect cst Ohi Electricity Markets: 29
Cnsumer Chices fr Manufacturing Cmpany Standard Service Offer/Default Services CRES Prvider Direct Purchase frm a Generatr Alternatives t Electric Distributin Utilities (EDU) Service D nt shp fr prvider Shp fr Prvider Efficient fr Large Cmpanies Self Generatin Municipal/Rural Utility D nt avid EDU charges Pssible Avid EDU Charges and Nn-by-passable Riders Ohi Electricity Markets: 30
Structure f Electricity Retail Prices, 2013 Final Cnsumer s Retail Price 0.0828 $/kwt NBP Riders 19% CRES Prvider s Cmpnent f the Retail Price 0.0521 $/kwt Capacity 5% Distributin 18% Energy 50% Energy 86% Ancillary 5% Lses 4% Transmissin 5% Lses 2% Ancillary 3% Capacity 3% Surce f data: Scit Energy Electricity is abve 80% f the CRES Prvider s cmpnent f retail price, but nly 50% f the final cnsumer s retail price. Ohi Electricity Markets: 31
Cmpnent f Electricity Retail Price First step t reducing electricity bill: understand that nly abut 50% f cst is fr energy lad. Other 50% is cst f transmissin, distributin, capacity, ancillary services, lses f electricity, and nn-by-passible riders. The price fr energy lad (yur first 50% f the ttal cst) may be secured thrugh a pwer purchase agreement with a CRES prvider. Typically PPAs are fr 1-3 years. Even fr smaller users, this is a better ptin than default services if yu shp. Hwever it may nt be lwer than can be acquired thrugh an aggregatr. Cst f distributin, transmissin, and nn-by-passable charges are prprtinal t the amunt f electricity yu cnsume Ancillary services are grid supprt csts that PJM charges each CRES based n their verall custmer prtfli. These charges are typically allcated t individual custmers based n cnsumptin and are included in the rate frm the CRES prvider The rate f capacity charges depends n 3-years-ag market auctin, but can be heavily influenced by amunt and time when peak cnsumptin ccurs. Capacity auctins are individual t each service area. Capacity charges f tw similar cmpanies frm nt the same service area might be significantly different Capacity csts can be managed in part thrugh ensuring peak cnsumptin des nt cincide with five system wide peak perids. Ohi Electricity Markets: 32
Prjected Structure f CRES Prvider s Cmpnent f the Retail Price: Example f the First Energy Territry 2013/2014 2015/2016 4% 2% 3% 1% 2% Energy Capacity 37% Lsses Other 60% 91% Capacity charges are n the rise Ohi Electricity Markets: 33
Manufacturer s Decisin Making Prcess Assess ability t self-generate electricity (if yes, at what cst) r t replace electricity with direct use f gas r waste heat Identify utility designated territry and EDU; identify alternative prviders, such as municipal r rural cperatives Cnsider imprtance f such things as (a) supply interruptin, (b) relative share electricity is f yur ttal cst, (c) ability t reduce lad during grid peaks and (d) ability t withstand risk n price change. Decide whether yu can r need t spend time/mney n hiring experts, such as brkers, t develp strategies fr using financial mechanisms fund in electricity markets, r use default services Understand yur tday and future cst f electricity (capacity charges are n a rise, especially in sme designated territries) Decide whether a relcatin t cheaper and less remte r less cngested gegraphy culd be yur ptin Secure yur electricity verall cst using financial market mechanisms - starting with the largest share f yur cst energy. Determine what, if any, flexibility yu have t reduce lad during peak grid cnsumptin, bth t reduce capacity csts and t take advantage f demand respnse prgrams Analyze hw yu can respnd tday and tmrrw t changes in yur amunt and schedule f electricity cnsumptin Find ut what factrs shuld be n yur mnitring list regarding electricity cnsumptin: ther fuel csts, increase f cnsumptin at certain hurs, etc. Implement energy efficiency prjects, subject t feasibility csts Understand yur way t influence electricity markets: vice f business assciatins, educatin, alternative energy r alternative prductin technlgies Ohi Electricity Markets: 34
Manufacturer s Decisin Making Prcess Assess ability t self-generate electricity, r t replace electricity with gas. Municipal r rural cp? Recgnize yur utility designated territry and yur distributin services prvider Cnsider what is imprtant fr yur cmpany: 1. Uninterrupted supply 2. Share f yur ttal cst 3. Ability t manage lad during grid peak If yes, at what cst 4. Predictability f price Spend time/mney and exercise financial mechanisms f the electricity market Use default services Understand current and future cst f electricity Relcate t cheaper r less cngested gegraphy Secure yur electricity verall cst using financial market mechanisms Analyze hw yu can respnd t amunt and schedule f electricity cnsumptin Find ut what factrs shuld be n yur mnitring list regarding electricity cnsumptin Implement energy efficiency prjects, subject t feasibility csts Understand hw cmpany can influence available electricity markets Ohi Electricity Markets: 35
Research Team Cleveland State University Maxine Gdman Levin Cllege f Urban Affairs Urban Center Dr. Iryna Lendel, Assistant Directr Center fr Ecnmic Develpment Andrew Thmas, Executive in Residence Energy Plicy Center Figures by Serena E. Alexander Ph.D. student at the Cllege f Urban Affairs, Cleveland State University The research team is grateful t Susanne Buckley frm Scit Energy and Lisa McAllister frm American Public Pwer fr cmments n the cntent f the study and analytical examples. Ohi Electricity Markets: 36