Decision support system for utility performance evaluation
In a previous NRRI report (Anselin, Pike, Smith (1981), ''The Measurement of Electric Utility Performance: Preliminary Analysis''), an overview of several traditional methodologies to achieve this was presented (management audits, financial and engineering indexes, econometric studies), and a new technique based on multicriteria decision analysis was suggested. In this report, the decision analytic method for performance evaluation is considered in more detail, and compared to the more traditional approaches of a total factor productivity index (TFP) and econometric cost function estimates. Utility performance evaluation is considered as part of a decision support system, i.e., the combination of an information system (data base) and a set of operational decision rules (performance indexes). As part of this decision support system, an extensive data on 210 variables for 123 privately owned electric utilities over the period 1964-1981. Multicriteria evaluation techniques, such as the analytic hierarchy process and concordance analysis, and economic techniques, such as a total factor productivity (TFP) index and the residual analysis of econometric short- and long-run cost functions are discussed in detail with respect to their methodological and theoretical foundations. They are also implemented empirically on a common data base, and compared with respect to the resulting performance rating of the companies. 78 references.
- OSTI ID:
- 5528667
- Resource Relation:
- Related Information: NRRI-84-15
- Country of Publication:
- United States
- Language:
- English
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