CSEM Executive Education Course: Economic Fundamentals of Electricity Regulation and Markets

January 20 – 21, 2005


Severin Borenstein, Director of U.C. Energy Institute, Co-Director of CSEM and E.T. Grether Professor of Business Administration and Public Policy at the Haas School of Business, U.C. Berkeley.

James Bushnell, Research Director of U.C. Energy Institute, Co-Director of CSEM and Lecturer at the Haas School of Business, U.C. Berkeley.


California Independent System Operator Facility
Board Room
151 Blue Ravine Road
Folsom, California

Folsom is near Sacramento, CA and accessible from the Sacramento International Airport, which is approximately 35 miles south of Folsom.

Course Description:

Electricity deregulation and the ensuing California crisis have dramatically changed electricity markets. Drawing heavily on the tools of economics and finance, this course will cover the regulatory and public policy issues that these changes have raised. The impacts and consequences of different strategies are evaluated in the context of the continuing changes in the organization and regulation of electricity markets.

Course Syllabus

Learning Objectives:

Identify market implications of different regulatory strategies
Examine electricity market fundamentals
Comprehend basic financial instruments, hedging, and trading strategies
Understand the relationship between retail and wholesale markets
Explore the economics underlying transmission pricing and management regimes
Understand market power and market manipulation, and options for mitigation

Who Should Attend?

Management and senior level regulatory staff with minimal training in economics or electricity regulation;
Professional staff interested in post-restructuring electricity economics; and
Electricity industry professionals interested in understanding the economics of electricity regulation and markets.