The impact of marginal cost electricity pricing in the state of Maryland

Technical Report · Thu Feb 01 04:00:00 EST 1979

OSTI ID:5376698

Levin, S L; Taylor, L D; Wenders, J T

The study has shown that it is possible to estimate seasonal elasticities from existing data, that marginal costs can be calculated, and that marginal-cost based rates for electricity can be calculated with confidence from available data. Predictions can be made of the effect of implementing seasonal pricing, although more work needs to be done on time-of-day (TD) elasticities in order to deal with the effects of introducing seasonal-time-of-day (STD) pricing. The study has also shown that it is possible to calculate the benefits and costs of seasonal and STD pricing. Guidelines can be determined to align the revenues produced from marginal-cost rates with a utility's revenue requirement in a manner that preserves the greatest portion of the welfare gain.

• Research Organization: Data Resources, Inc., Washington, DC (USA); Southern Illinois Univ., Edwardsville (USA); Arizona Univ., Tucson (USA)
• OSTI ID: 5376698
• Report Number(s): PB-297222
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296002* -- Energy Planning & Policy-- Electric Power Transmission & Distribution-- (-1989)
CENTRAL REGION
ECONOMIC ELASTICITY
ECONOMIC IMPACT
ELECTRIC POWER
ELECTRIC UTILITIES
INCOME
MARGINAL-COST PRICING
MARYLAND
NORTH AMERICA
POWER
POWER DEMAND
PRICES
PUBLIC UTILITIES
USA