Distribution pricing based on yardstick regulation

Author

Lima, J. W Marangon ; Noronha, J.C.C. ; Arango, H. ; Dos Santos, P. E Steele

Author_Institution

Fed. Sch. of Eng., Itajuba, Brazil

Volume

17

Issue

1

fYear

2002

fDate

2/1/2002 12:00:00 AM

Firstpage

198

Lastpage

204

Abstract

Transmission and distribution (T&D) pricing has been one of the keystones of the ongoing deregulation and privatization process in the power industry. The electricity market has been established based on the assumption of open access and nondiscriminatory use of the T&D assets. As T&D business remains as a monopoly, it is necessary to provide economic regulation. Many papers have dealt with transmission pricing and certain maturity has been reached in this area, but this is not true in the case of distribution services. This paper focuses on the distribution pricing methods and suggests one that is currently under development in Brazil. This method is based on incremental costs derived from the aggregated expansion plan of a particular utility, named model utility. This utility was obtained by comparisons among the real distribution companies. The method follows the fundamentals of the yardstick regulation

Keywords

costing; electricity supply industry; power distribution economics; tariffs; Brazil; business; distribution pricing; economic regulation; electricity market; incremental costs; open access; power industry deregulation; power industry privatization; wheeling charges; yardstick regulation; Business; Costs; Electricity supply industry; Electricity supply industry deregulation; Mesh generation; Power engineering and energy; Power generation economics; Power industry; Pricing; Privatization;

fLanguage

English

Journal_Title

Power Systems, IEEE Transactions on

Publisher

ieee

ISSN

0885-8950

Type

jour

DOI

10.1109/59.982214

Filename

982214