Applying the competitive market business equation to power generation operations and economics
Technical Report
·
OSTI ID:269592
- Applied Ecomonic Research Co., Inc., New York, NY (United States)
This paper presents cost-effectiveness evaluation, benchmarking, planning, and decision-making tools being used with utilities to address critical production/cost-efficiency and market issues in the transition to a competitive market in electricity. It expands upon AER`s earlier work in the area of {open_quotes}frontier analysis{close_quotes} of plant spending vs. reliability (earlier technical papers and references available upon request). It discusses development of a method for quantifying the various elements involved and for structuring them into an integrated framework and set of models for analysis, evaluation of alternatives, and forward planning in the evolving transition to a deregulated, competitive market in electricity. The work presented addresses the overall production cost frontier, i.e., the marginal cost of production including operation, maintenance, capital, and fuel expenditures. (Fuel expenditures are a function of the price paid for fuel (per Btu) and the efficiency with which the fuel is transformed from Btu`s to kWh, i.e., the heat rate.) Frontier`s (best demonstrated performance curves) are developed for the total cost of production - analyzing both reliability and heat rate. The paper describes and gives examples of the framework for evaluating the competitive position of a utility`s generating units compared to other units, as well as the framework for evaluating the potential for revenue obtained outside the existing service area.
- Research Organization:
- Electric Power Research Inst., Palo Alto, CA (United States); Encor-America, Inc., Mountain View, CA (United States)
- OSTI ID:
- 269592
- Report Number(s):
- EPRI-TR--106529; CONF-960524--
- Country of Publication:
- United States
- Language:
- English
Similar Records
Applying the competitive market business equation to power generation operations and economics
Generation cost frontier analysis, dynamic market adjustment, and strategic gaming: Integrated tools for the uncertain transition to a competitive electricity market
Generation cost frontier analysis, dynamic market adjustment, and strategic gaming: Integrated tools for benchmarking, competitive market analysis, and strategy formulation under conditions of uncertainty in the transition to a competitive electricity market
Conference
·
Mon Dec 30 23:00:00 EST 1996
·
OSTI ID:549954
Generation cost frontier analysis, dynamic market adjustment, and strategic gaming: Integrated tools for the uncertain transition to a competitive electricity market
Conference
·
Mon Sep 01 00:00:00 EDT 1997
·
OSTI ID:514827
Generation cost frontier analysis, dynamic market adjustment, and strategic gaming: Integrated tools for benchmarking, competitive market analysis, and strategy formulation under conditions of uncertainty in the transition to a competitive electricity market
Conference
·
Wed Jul 01 00:00:00 EDT 1998
·
OSTI ID:20015064