ADAPTATION OF SYSTEM EXPANSION TO MARGINAL COST BASED RATES USING A LOAD SIMULATION MODEL

Glenn Jenkins () and John Evans

No 1978-07, Development Discussion Papers from JDI Executive Programs

Abstract: Changes in the pricing of electrical energy in Canada to encourage a more efficient use of the country’s resources will have an impact on both electric utilities and economy in general. The purpose of this paper is to outline a framework within which these impacts can be studied and evaluated. The following points will receive consideration: (a) The reasons why the present rate structure encourages an inefficient use of resources, (b) The role of a load simulation model in the planning of system expansion, (c) The important characteristics of the load simulation model we have developed, and (d) The integration of a utility’s planning with a consistent cost/benefit evaluation of alternative pricing policies. The evaluation procedure is discussed from the points of view of both the utility and the public.

Keywords: Electricity demand simulation; electricity pricing (search for similar items in EconPapers)
JEL-codes: Q41 (search for similar items in EconPapers)
Pages: 16 pages
Date: 1978-05
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Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:32

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