The U.S. electricity market twenty years after restructuring: A review experience in the state of Delaware

Abstract

Electricity industry restructuring in the United States, which began in the 1990s, was aimed at enhancing market competitiveness and lead to efficient resource allocation and cost reduction. The state of Delaware was one of the earliest adopters of restructuring and has gained more than 20 years of experience. The retail customers in a restructured market had greater opportunities to choose between electricity generators. However, this research compares electricity prices and finds that restructured states have higher electricity rates than non-restructured states. A better understanding of the welfare and satisfaction of electricity customers in the context of restructuring is needed.