Service Opportunities for Electric Utilities: Creating Differentiated Products
This monograph is the proceedings of a symposium held at the University of California at Berkeley, September 12-14, 1990. It was sponsored by the Electric Power Research Institute (EPR!) and by the University of California University-Wide Energy Research
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Topics in Regulatory Economics and Policy Series Michael A. Crew, Editor Graduate School of Management Rutgers University Newark, New Jersey, U.S.A. Previously published books in the series: Rowley, C., R. Tollison, and G. Tullock: Political Economy of Rent-Seeking Frantz, R.: X-EffICiency: Theory, Evidence and Applications Crew, M.: Deregulation and DiversifICation of Utilities Shogren, J.: The Political Economy of Government Regulation Hillman, J., and R. Braeutigam: Price Level Regulation for Diversified Public Utilities Einhorn, M.: Price Caps and Incentive Regulation in Telecommunications Crew, M.: Competition and the Regulation in Telecommunications Crew, M., and P. Kleindorfer: Competition and Innovation in Postal Services Thompson, H.: Regulatory Finance: Financial Foundations of Rate of Return Regulation Crew, M., and P. Kleindorfer: Economic Innovations in Public Utility Regulation Crew M., and P. Kleindorfer: The Economics of Postal Service Crew, M., and P. Kleindorfer: Regulation and the Nature of Postal and Delivery Services
SERVICE OPPORTUNITIES FOR ELECTRIC UTILITIES: CREAT ING DIFFERENTIATED PRODUCTS
Edited by Shmuel S. Oren University of California, Berkeley and Stephen A. Smith Santa Clara University
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Springer Science+ Business Media, LLC
Llbrary of Congress Cataloglng·ln·Publlcation Data Service opportunities for electric utilities : creating differentiated products I edited by Shmuel S. Oren and Stephen A. Smith. p. cm. -- (Topics in regulatory economics and policy series) ISBN 978-1-4613-6374-3 ISBN 978-1-4615-3140-1 (eBook) DOI 10.1007/978-1-4615-3140-1 1. Electric utilities--Congresses. 2. Diversification in industry--Congresses. I. Oren, Shmuel S. II. Smith, Stephen A. (Stephen Alian), 1942- . III. Series: Topics in regulatory economics and policy. HD9685.A2S44 1993 333.79'32'06--dc20
92-44559 CIP
Copyright C 1993 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 1993 Softcover reprint ofthe hardcover lst edition 1993 AII rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, photo-copying, record ing, or otherwise, without the prior written permission of the publisher, Springer Science+Business Media, ILC. Printed on acid-free paper.
TABLE OF CONTENTS I.
INTRODUCTION Why Service Differentiation? Why Now? Hung-po Chao and Riaz Siddiqi
II.
Real Time Pricing: Bringing Added Value to Utility Programs Bahman Daryanian, Richard D. Tabors, and Roger E. Bohn
7 31
UNDERSTANDING THE CUSTOMER'S NEEDS Modeling Customer Preferences; Lessons From Existing Models and Data Douglas W. Caves and J. David Glyer
69
Introducing Market Focus into Rate Design John H. Chamberlin and Kenneth A. Jensen
87
What Can We Learn From Customer Surveys Gregory L. Hamm and Steven R. Sim IV.
1
THEORETICAL FOUNDATIONS FOR SERVICE DESIGN Priority Service Methods Robert Wilson
III.
Page
107
SUPPL Y SIDE CONSIDERATIONS Technical Foundations for Pricing Systems
