Economic Impact of Electric Power
Industry Deregulation on the State of Washington
Roger Coupal, University of Idaho
Abstract
An economic analysis of electric power deregulation on the state of Washington is presented using a
computable general equilibrium model of the Washington economy developed at Washington State University.
The analysis evaluates the statewide economic impact from the BPA of marketing more electricity to areas
outside the Northwest Power Pool. Overall the analysis shows that the increased income from the BPA would
have a positive impact on regional income, but would also increase the regional price of electricity. This would
result in a structural change in the Washington economy, damaging industries that depend upon low cost electrical
energy. Reduced output in those industries are compensated by the increased revenues of the BPA and
lower economy-wide wage rates from out-migration and substitution of capital for labor, which then helps
other sectors of the economy.
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