Principal John Morris presents results from a Supply Function Equilibrium model at Western Economic Association conference.

Principal John Morris presented “The Likely Effect of the Proposed Exelon-PSEG Merger on Wholesale Electricity Prices” at the Western Economic Association International (WEAI) conference July 2, 2007, in Seattle, Washington. The paper, co-written by EI Senior Energy Analyst Daniel Oska, provides a Supply Function Equilibrium (SFE) analysis of the merger proposal, which was eventually withdrawn in 2006. Morris and Oska found that the proposed merger, with the divestitures proposed by Exelon and PSEG, would have reduced wholesale electric power prices between 0.1 and 4.6 percent. The potential savings to consumers could have been as high as $1.18 billion per year.