Peak Load and Capacity Pricing Theory and Practice in Electricity
Peak Load and Capacity Pricing lays out clear pricing strategies for understanding peak load and capacity pricing structures, further cementing electricity's role as an asset class with fixed and variable costs.
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10.1057/9781137370921 - Peak Load and Capacity Pricing, Chris Harris
Copyright material from www.palgraveconnect.com - licensed to New York University - Waldmann Dental Library - PalgraveConnect - 2015-05-17
Peak Load and Capacity Pricing
10.1057/9781137370921 - Peak Load and Capacity Pricing, Chris Harris
Copyright material from www.palgraveconnect.com - licensed to New York University - Waldmann Dental Library - PalgraveConnect - 2015-05-17
This page intentionally left blank
Theory and Practice in Electricity
Chris Harris
10.1057/9781137370921 - Peak Load and Capacity Pricing, Chris Harris
Copyright material from www.palgraveconnect.com - licensed to New York University - Waldmann Dental Library - PalgraveConnect - 2015-05-17
Pe ak L oa d a nd C apaci t y Pr i c i ng
peak load and capacity pricing
Copyright © Chris Harris, 2015. First published in 2015 by PALGRAVE MACMILLAN® in the United States—a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN: 978–1–137–38481–2 Library of Congress Cataloging-in-Publication Data is available from the Library of Congress. A catalogue record of the book is available from the British Library. Design by Newgen Knowledge Works (P) Ltd., Chennai, India. First edition: April 2015 10 9 8 7 6 5 4 3 2 1
10.1057/9781137370921 - Peak Load and Capacity Pricing, Chris Harris
Copyright material from www.palgraveconnect.com - licensed to New York University - Waldmann Dental Library - PalgraveConnect - 2015-05-17
All rights reserved.
10.1057/9781137370921 - Peak Load and Capacity Pricing, Chris Harris
Copyright material from www.palgraveconnect.com - licensed to New York University - Waldmann Dental Library - PalgraveConnect - 2015-05-17
To Mum—with all my love
10.1057/9781137370921 - Peak Load and Capacity Pricing, Chris Harris
Copyright material from www.palgraveconnect.com - licensed to New York University - Waldmann Dental Library - PalgraveConnect - 2015-05-17
This page intentionally left blank
List of Figures
ix
Foreword
xv
Acknowledgments
xvii
1 Introduction
1
2 The Modeling Framework 2.1 Nomenclature 2.2 Basic Modeling of Consumption 2.3 Basic Model of Physical/Production 2.4 Other Aspects of Modeling
5 5 5 12 14
3 The Framework and Development of Peak Load Pricing 23 3.1 Basic Peak Load Pricing Theory 23 3.2 Early Days of Tariff Evolution 28 3.3 Postwar Theory and Application of Capacity Charging—The Drèze Approach 33 3.4 Elastic Demand for Capacity—The Steiner Framework 47 3.5 Efficiency of Rationing of Demand
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