Using computer simulation to mitigate risk in electricity generation/consumption collaboration policies

The electric utility industry has undergone fundamental change in the last decade. Foremost of these changes have been numerous deregulation attempts. Producers and large consumers have built business models based upon large volume transactions, which lead to smooth production and volume discounting. The risks associated with using these traditional business models in deregulated markets are many. This paper describes the development of a computer simulation environment that models a novel collaborative strategy proposed by a local electricity utility to mitigate highly varying load situations demanded by the largest steel-producing region in the United States. Through the use of this model, collaborative strategies for effective electricity generation and usage are developed and analyzed.