Research On The U.S. Electricity Market Based On Price Fluctuations

Electricity power is a basic industrial component which plays an important role in the economy of a nation. It develop continuously with the human society in the twentieth century, economies of the developed countries grew rapidly. However, disadvantages of the integration and monopoly electricity industry increasingly highlight, which hindered the development of economy and society. Electricity market reform is body on the table. Chile and Britain take the lead in the implementation of electricity market reform and succeed in generation, electricity price and fuel efficiency. On the basis, others countries implement reform. The environment of economic and political contributed to the models of countries be diversified.The U.S.’s economic is developed and the electricity market is one of the largest in world. The suggestions could be make for China’s electricity market reform by studying the basic characteristics and development course of the U.S. electricity market. It can reduce the risk in the China’s electricity market reform.In this paper, first, the present and future development trends of the energy structure for generation and electricity consumption are analyzed for China and U.S. Secondly, the correlations evolution of electricity prices among 50 states and the District of Columbia are studied based on random matrix theory(RMT). It depicts the basic characteristics of U.S. electricity market. Thirdly, four regime shifts are identified from January 1990 to August 2014 in the U.S. residential, commercial and industrial electricity markets by qualitative and quantitative method. The genetic algorithm(GA) is applied to analyze the community of evolution. It verifies the four regime shifts and presents the evolution of U.S.’s electricity market over time. The results show that, the correlations of electricity prices increased continually in the three departments. However, it decreased in 2012 which further confirms its sensitivity to fuel market. Four regime shifts exist in the three departments though the different times of occurrence caused by price levels. And, the fluctuation of community evolution is consistent with four regime shifts. The final part is a summary of the research analyzed and results.