Capacity Rationing and Fixed Cost Collection

Chi-Keung Woo

The Energy Journal, 1991, vol. 12, issue 2, 153-164

Abstract: This paper proposes a simple load management program with a two-part 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.

Keywords: Electric utilities; load management; Reliability. Rationing; Fixed cost collection (search for similar items in EconPapers)
Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:12:y:1991:i:2:p:153-164

DOI: 10.5547/ISSN0195-6574-EJ-Vol12-No2-9

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