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Title: Designing PURPA (Public Utilities Regulatory Act) power purchase auctions: Theory and practice. [Cogenerated electricity purchasing model]

Technical Report ·
DOI:https://doi.org/10.2172/5715525· OSTI ID:5715525

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