Incremental cost pricing of transmission services. Final report
This report, prepared by ICF Resources, under a sub-contract with IT Corporation, is concerned chiefly with examining the economic concepts underlying an Incremental Cost Pricing Framework (ICPF), which is defined here as a pricing regime that takes into account several factors: economic efficiency in terms of sending the correct long-term price signals to both users and owners of transmission assets; pricing of individual services in relationship to cost causation; full recovery of costs associated with transmission service; and applicability to real-world power systems without extraordinary administrative burdens. In the course of this examination, the report makes assumptions, as necessary, and assesses the extent to which they may or may not comport with real-world conditions. It also assesses the pros and cons of different approaches to pricing various components of transmission service without making a recommendation as to the superiority of one approach over another from a public policy perspective.
- Research Organization:
- ICF Resources, Inc., Fairfax, VA (United States)
- Sponsoring Organization:
- USDOE, Washington, DC (United States)
- DOE Contract Number:
- AC01-93FE62490
- OSTI ID:
- 10111087
- Report Number(s):
- DOE/FE/62490-T1; ON: DE95005777
- Resource Relation:
- Other Information: PBD: Dec 1994
- Country of Publication:
- United States
- Language:
- English
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