Ramsey pricing of electricity under unknown bypass costs

Journal Article · Sat Nov 30 23:00:00 EST 1996 · Energy Journal

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol17-No2-4· OSTI ID:401752

Horowitz, I; Seeto, D ^[1]; Woo, Chi-Keung ^[2]

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1. Pacific Gas and Electric Company, San Francisco, CA (United States)
2. Energy and Environmental Economics, San Francisco, CA (United States)

The objective of this paper is to derive Ramsey prices under partial deregulation wherein some customers can bypass a local utility`s service at costs unknown to either the regulator or the utility. The resulting Ramsey prices are highly relevant for the natural gas and electric utility industries for three important reasons. The authors elaborate on these reasons. 23 refs.

• Sponsoring Organization: USDOE
• OSTI ID: 401752
• Journal Information: Energy Journal, Journal Name: Energy Journal Journal Issue: 2 Vol. 17; ISSN ENJODN; ISSN 0195-6574
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
DEREGULATION
ELECTRIC UTILITIES
INCREMENTAL-COST PRICING
MARKETING
NATURAL GAS INDUSTRY