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Adaptation Of System Expansion To Marginal Cost Based Rates Using A Load Simulation Model


  • Glenn Jenkins

    () (Queen's University, Kingston, On, Canada)

  • John Evans


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.

Suggested Citation

  • Glenn Jenkins & John Evans, 1978. "Adaptation Of System Expansion To Marginal Cost Based Rates Using A Load Simulation Model," Development Discussion Papers 1978-07, JDI Executive Programs.
  • Handle: RePEc:qed:dpaper:32

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    References listed on IDEAS

    1. Eberhard, Anton & Shkaratan, Maria, 2012. "Powering Africa: Meeting the financing and reform challenges," Energy Policy, Elsevier, vol. 42(C), pages 9-18.
    2. Gagnon, Luc & Belanger, Camille & Uchiyama, Yohji, 2002. "Life-cycle assessment of electricity generation options: The status of research in year 2001," Energy Policy, Elsevier, vol. 30(14), pages 1267-1278, November.
    3. Prasad Tallapragada V.S.N. & Maria Shkaratan & Ada Karina Izaguirre & Jaakko Helleranta & Saifur Rahman & Sten Bergman, 2009. "Monitoring Performance of Electric Utilities : Indicators and Benchmarking in Sub-Saharan Africa," World Bank Other Operational Studies 13030, The World Bank.
    4. Karekezi, Stephen & Kimani, John, 2002. "Status of power sector reform in Africa: impact on the poor," Energy Policy, Elsevier, vol. 30(11-12), pages 923-945, September.
    5. Steinbuks, J. & Foster, V., 2010. "When do firms generate? Evidence on in-house electricity supply in Africa," Energy Economics, Elsevier, vol. 32(3), pages 505-514, May.
    6. Anton Eberhard & Vivien Foster & Cecilia Briceño-Garmendia & Fatimata Ouedraogo & Daniel Camos & Maria Shkaratan, 2008. "Underpowered : The State of the Power Sector in Sub-Saharan Africa," World Bank Other Operational Studies 7833, The World Bank.
    7. Chun-Yan Kuo & Glenn P. Jenkins & M. Benjamin Mphahlele, 2003. "The Economic Opportunity Cost Of Capital In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 71(3), pages 523-543, September.
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    More about this item


    Electricity demand simulation; electricity pricing;

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices


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