Capacity Rationing and Fixed Cost Collection

Chi-Keung Woo

The Energy Journal, 1991, vol. Volume 12, issue Number 2, 153-163

Abstract: This paper proposes a simple load management program with a twopart tariff to ration an electric utility's installed capacity and to collect its fixed costs under asymmetric information and demand uncertainty. Because of its simplicity, the program is a practical alternative to spot pricing and rationing schemes with highly nonlinear rate structures.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 1991
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