IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v12y1982i6p83-104.html
   My bibliography  Save this article

Developing Generation Construction Plans for the Potomac Electric Power Company: Management Science in Utility Regulation

Author

Listed:
  • Joseph S. Graves

    (Resource Planning Associates, Inc., 1901 L Street, N.W., Washington, D.C. 20036)

Abstract

To assist the Public Service Commission of the District of Columbia in overseeing the construction plans of the Potomac Electric Power Company, Resource Planning Associates, Inc. (on behalf of the Commission staff) independently developed long-term capital expansion plans for the utility. Such decisions in this extremely capital-intensive industry have effects for up to 50 years and involve billions of dollars in initial expenditures and several times more in future retail rates. In a publicly scrutinized, trial-like, adversary situation, in spite of the inherent uncertainties in and the complexities of the issues being addressed, our analysis showed how substantial savings could be achieved (as much as 15 billion dollars depending upon the future values of uncertain and uncontrollable variables), and convinced the Commission that their action was necessary.To do this we used state-of-the-art methods for generation planning and a new framework for strategic planning under uncertainty.

Suggested Citation

  • Joseph S. Graves, 1982. "Developing Generation Construction Plans for the Potomac Electric Power Company: Management Science in Utility Regulation," Interfaces, INFORMS, vol. 12(6), pages 83-104, December.
    • Handle: RePEc:inm:orinte:v:12:y:1982:i:6:p:83-104
    DOI: 10.1287/inte.12.6.83
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.12.6.83
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.12.6.83?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:12:y:1982:i:6:p:83-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.