Utility spot pricing study : Wisconsin
Spot pricing covers a range of electric utility pricing structures which relate the marginal costs of electric generation to the prices seen by utility customers. At the shortest time frames prices change every five minutes--the same time frame as used in utility dispatch--longer time frames might include 24-hour updating in which prices are set one day in advance but vary hourly as a function of projected system operating costs. The critical concept is that customers see and respond to marginal rather than average costs. In addition the concept of spot pricing includes a "quality of supply" component by which prices are increased at times in which the system is approaching maximum capacity, thus providing a pricing mechanism to replace or augment rationing.
Year of publication: |
1982
|
---|---|
Authors: | Caramanis, Michael C. ; Tabors, Richard D. ; Stevenson, Rodney E. |
Publisher: |
[Cambridge, Mass.] : Massachusetts Institute of Technology, Energy Laboratory, 1982 |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Schweppe, Fred C., (1988)
-
Schweppe, Fred C., (1988)
-
Optimal pricing of public utility services sold through networks
Bohn, Roger E., (1984)
- More ...