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With the deregulatory reforms in the electricity industry, stages of production have been split up and are typically performed by different companies that compete for inputs in decentralized markets. As the extant EU and US regulatory frameworks allow integrated electricity holding companies to have ownership of firms active in generation, distribution, and transmission, these holding companies often own both the seller and one of the buyers in such decentralized markets. I show that such a holding company has distorted bidding incentives in auctions; it will make its integrated buyer bid more aggressively to increase auction revenue. As a result, integrated buyers are more likely to win the auction, the good is sold for a higher price, and the auction is less efficient. Moreover, independent companies are less likely to win the auction, and, in any case, pay a higher price.