Peak-Load Pricing and Reliability under Uncertainty
This paper develops the welfare foundations of peak-load pricing under uncertainty, building on Brown and Johnson (1969), Crew and Kleindorfer (1976), and Chao (1983). The context is that of a welfare-maximizing public enterprise facing uncertain and nondeferrable demand, and uncertain supply. The paper first describes various elements of outage cost, including rationing costs, disruption costs, and surplus losses due to unsatisfied demand. Exact welfare-optimal results are then derived, in contrast to the earlier approximations by Turvey and Anderson (1977) and Chao (1983). The results are generalized to take account of diverse technologies and multiple planning periods, and their implications for utility pricing and investment in an integrated resource planning context are discussed. Copyright 1993 by Kluwer Academic Publishers
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
When requesting a correction, please mention this item's handle: RePEc:kap:regeco:v:5:y:1993:i:1:p:5-23. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.