Standby services & efficient competition: Designing for the markets of the future
- Megdal & Associates, Boxborough, MA (United States)
- Edison Electric Inst., Washington, DC (United States)
Technological changes and PURPA significantly impacted retail competition in generation. As a result, pricing for standby services in retail markets has fluctuated and evolved significantly. This includes a significant element of learning from mistakes that are now beginning to be discovered. FERC`s Open Access NOPR is expected to have similar impacts for wholesale competition, in generation, and over the long-term, in transmission. That is, standby services pricing in the wholesale markets could become increasingly important. The changes, mistakes, and evolution of pricing of retail standby services can be used to anticipate the pricing issues for standby services in the newer more competitive wholesale and retail power markets of the future. This paper presents an overview of the issues that utilities should address when pricing standby services. The material for this paper is based upon work Dr. Megdal performed for the Edison Electric Institute (EEI) and supervised by Mr. Eric Ackerman. Dr. Megdal developed an issue paper for EEI concerning using retail and state experiences with standby service pricing to understand potential issues on the wholesale level. These are being examined from the perspective of potential market changes to be expected from the FERC Open-Access rulemaking.
- Research Organization:
- Electric Power Research Inst. (EPRI), Palo Alto, CA (United States)
- OSTI ID:
- 254465
- Report Number(s):
- EPRI-TR-106232; CONF-960330-; TRN: 96:002542-0012
- Resource Relation:
- Conference: 1996 EPRI conference on innovative approaches to electricity pricing: managing the transition market-based pricing, La Jolla, CA (United States), 27-29 Mar 1996; Other Information: PBD: Mar 1996; Related Information: Is Part Of Proceedings: 1996 EPRI conference on innovative approaches to electricity pricing: Managing the transition to market-based pricing; PB: 347 p.
- Country of Publication:
- United States
- Language:
- English
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