Transmission pricing in California's proposed electricity market

The California electricity industry is scheduled to undergo a transition into a less-regulated, competitive market starting on January 1, 1998. This article provides an overview of the organization of this market and its general approach for managing transmission access and pricing. Much of this approach has been developed through a process of negotiation and compromise. The exact implementation of this approach may therefore end up producing an electricity marketplace that is quite different than the one envisioned by those privy to the negotiation process.