Generation cost frontier analysis, dynamic market adjustment, and strategic gaming: Integrated tools for the uncertain transition to a competitive electricity market
Conference
·
OSTI ID:514827
- Applied Economic Research Co., Inc., New York, NY (United States)
The electric utility industry is currently experiencing major change brought on by deregulation. As a result, the focus of power plant management is moving from maximizing plant reliability to reducing costs and getting the most from maintenance reliability spending. To analyze the efficacy of maintenance programs, utilities have benchmarked their plants` maintenance spending and reliability against similar plants`--those with similar equipment design, vintage, age, capacity, and operating history. In various earlier works, applied economic research (AER) has discussed the importance of understanding and quantifying the relationship between spending on maintenance activities and resulting plant reliability. AER has analyzed those relationships using multivariate regression modeling and a technique called frontier analysis. Regression modeling allows the quantification of the individual impacts of key factors affecting cots and performance such as equipment design, operating history, and age. It also furnishes the basis for developing benchmarking, forecasting, and planning tools. Frontier analysis is a tool for evaluating the market efficiency of plants relative to the best achievable practice observed in similar units or in the industry. Units/plants on the frontier are those achieving maximum market efficiency. These models also provide marginal cost curves for reliability relative to maintenance spending.
- OSTI ID:
- 514827
- Report Number(s):
- CONF-970456--
- Country of Publication:
- United States
- Language:
- English
Similar Records
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
Applying the competitive market business equation to power generation operations and economics
Applying the competitive market business equation to power generation operations and economics
Conference
·
Wed Jul 01 00:00:00 EDT 1998
·
OSTI ID:20015064
Applying the competitive market business equation to power generation operations and economics
Conference
·
Mon Dec 30 23:00:00 EST 1996
·
OSTI ID:549954
Applying the competitive market business equation to power generation operations and economics
Technical Report
·
Wed May 01 00:00:00 EDT 1996
·
OSTI ID:269592