By Ryan Handy

Deregulated utility markets decrease the cost of generating electricity by $3 billion per year, according to a study from the Energy Policy Institute of the University of Chicago.

A majority, more than 60 percent, of power in the U.S. comes from deregulated markets, including power in most of Texas, where customers purchase power through retail electricity companies that offer different prices for power. Texas’ deregulated market went into effect in 2002.

Power companies in deregulated markets are more likely to use lower-cost power generating units, and reduce the use of power generators that cost more to run, the University of Chicago study found. The study’s conclusions are based on simulated data pooled from daily electricity operating reports from nearly every electricity generating site in the country from 1999 to 2012…

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Areas of Focus: Energy Markets
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Energy Markets
Well-functioning markets are essential for providing access to reliable, affordable energy. EPIC research is uncovering the policies, prices and information needed to help energy markets work efficiently.
Electric Power
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Electric Power
As the electric power system faces new pressures and opportunities, EPIC research is working to identify the mix of policies needed to accelerate the global transition to clean, reliable, affordable...
Climate Change
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Climate Change
Climate change is an urgent global challenge. EPIC research is helping to assess its impacts, quantify its costs, and identify an efficient set of policies to reduce emissions and adapt...
Climate Economics
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Climate Economics
Climate change will affect every sector of the economy, both locally and globally. EPIC research is quantifying these effects to help guide policymakers, businesses, and individuals working to mitigate and...