text_combined: fwd abstract return path vkaminski aol com full name vkaminski message id date sun 1 oct 2000 07 40 46 edt subject abstract deng isye gatech edu mime version 1 0 content type multipart mixed boundary part 2 _ 15 9 e 45 9 f 27087 cbe _ boundary x mailer aol 3 0 16 bit windows sub 86 shijie sending abstract informs presentation vince last three years characterized exceptionally high volatility power prices us markets market developments created number unique challenges energy industry economists one immediate question answer measure volatility energy prices although agree prices power markets characterized high variability traditional measures used financial economics annualized standard deviation log price returns may fit well electricity prices second challenge explain sources high price volatility answer question extent attributed problems addressed long run problems include flaws market design allow market participants abuse market power limited availability unequal access transmission temporary shortages generation capacity factors underlying high volatility electricity prices may permanent nature may necessary price pay increased market efficiency expanded customer choice informs doc