Designing PURPA (Public Utilities Regulatory Act) power purchase auctions: Theory and practice. [Cogenerated electricity purchasing model]
The Public Utilities Regulatory Act (PURPA) requires there to be procedures for electric utilities to buy electric power from qualifying cogenerators and small power producers (QFs) at rates up to ''avoided cost.'' This has led to price-posting procedures at prices calculated as the utility's marginal cost. Unexpectedly large sales at these prices and slow adjustment to falling energy cost are partially responsible for payments to QFs in excess of the utility's true avoided cost. Using competitive bidding instead of posted prices has been proposed as a way to avoid this outcome. This report reviews bidding theory and explores four issues that arise in deisigning auction systems for the purchase of power from QFs under PURPA. 77 refs., 6 figs., 15 tabs.
- Research Organization:
- Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
- DOE Contract Number:
- AC03-76SF00098
- OSTI ID:
- 5715525
- Report Number(s):
- LBL-23906; ON: DE88004899
- Resource Relation:
- Other Information: Portions of this document are illegible in microfiche products. Original copy available until stock is exhausted
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
ELECTRIC POWER
SALES
ELECTRIC UTILITIES
PUBLIC UTILITY REGULATORY POLICIES ACT
BIDS
COGENERATION
COMPETITION
DISPERSED STORAGE AND GENERATION
MATHEMATICAL MODELS
POWER GENERATION
REGULATIONS
THEORETICAL DATA
DATA
DEUS
ENERGY SYSTEMS
INFORMATION
LAWS
NATIONAL ENERGY ACT
NUMERICAL DATA
POWER
PUBLIC UTILITIES
STEAM GENERATION
296000* - Energy Planning & Policy- Electric Power