Title :
The economic efficiency impacts of alternatives for revenue reconciliation
Author :
Kim, Balho H. ; Baughman, Martin L.
Author_Institution :
Dept. of Electr. & Comput. Eng., Texas Univ., Austin, TX, USA
fDate :
8/1/1997 12:00:00 AM
Abstract :
About a dozen electric utilities in the US offer rates that possess real-time characteristics. In these implementations the real-time prices are updated at half-hourly or hourly intervals and in no case are the prices spatially differentiated. The implemented rates are based upon marginal generating costs with markups to account for system transmission and distribution costs or other revenue reconciliation needs. This paper analyzes how great is the impact of alternative price markup methods on measures of social welfare and the time pattern of real-time prices. A case study and sensitivity results are also presented
Keywords :
costing; economics; electricity supply industry; power systems; US electric utilities; distribution costs; economic efficiency impacts; marginal generating costs; price markup methods; real-time characteristics; real-time price updates; real-time prices; revenue reconciliation; sensitivity results; social welfare; time pattern; transmission costs; Costs; Elasticity; Power generation; Power generation economics; Power system modeling; Pricing; Senior members; Student members; Supply and demand; Time measurement;
Journal_Title :
Power Systems, IEEE Transactions on
