This paper presents a simple analytical model to compare electricity prices under regulation and deregulation. A deregulated electricity market cannot have too many producers because they will not be able to recover their investment costs. Nor can it have too few producers because the resulting...

An extensive North American pipeline grid that physically integrates individual natural-gas markets, in conjunction with economic ties binding the California markets to those at Henry Hub, Louisiana and the New York mercantile exchange via an array of financial instruments, suggests that the...

Marginal costs of electricity vary by time and location. In the past, researchers attributed the variations to factors related to electricity generation and transmission. These authors, however, have not analyzed possible variations in marginal distribution capacity costs (MDCC). The objectives...

Securing forward contracts to manage procurement-cost risk is an intuitively appealing and economically reasonable strategy for a load-serving local distribution company (LDC) in today’s volatile electricity marketplace. However, knowing what to buy does not guarantee least-cost...

We estimate the option value of a non-firm electricity tariff commonly used by a local distribution company (LDC) in its electricity demand response program. This option value captures the benefit that a LDC enjoys from not serving an end-use load during high-price hours in a wholesale...

This paper implements a normalization/regression-based approach to estimate the kWh energy and kW savings from an experimental OEEP (operational energy-efficiency program) for municipal water pumping in California. The voluminous 1-min data collected in the course of the OEEP presents a unique...

Accurate hourly photovoltaic (PV) output data are useful for engineering design, cost-effectiveness evaluation, rate design, system operation, transmission planning, risk management, and policy analysis. However, a large sample of hourly metered PV data is seldom available, and engineering...

We explore three voluntary service options—real-time pricing, time-of-use pricing, and curtailable/interruptible service—that a local distribution company might offer its customers in order to encourage them to alter their electricity usage in response to changes in the...