REGIONAL DISPARITIES IN PRICING STRATEGIES OF ELECTRIC UTILITIES

There has been considerable disparity in pricing practices across elec tricity markets in the United States over the past two decades. The gr eatest contrast in environment which produces different pricing strate gies exists between the Midwest and the East. Electric utilities have used promotional rates for reasons either to stimulate the local econo my, to reduce excess capacity, or to attract new industry. The purpose of this paper is to identify factors affecting pricing strategies of electric utilities. We also attempt to identify the differences in pri cing strategies between electricity firms in the East and in the Midwe st.