Designing PURPA (Public Utilities Regulatory Policies Act) power purchase auctions: Theory and practice. [Buys from cogenerators and small power generators]

Technical Report · Sun Nov 01 04:00:00 EST 1987

OSTI ID:5833278

The Public Utilities Regulatory Act (PURPA) requires there to be procedures for electric utilities to buy electric power from qualifying cogenerators and small power producers (QFs) at rates up to ''avoided cost''. This has led to price-posting procedures at prices calculated as the utility's marginal cost. Unexpectedly large sales at these prices and slow adjustment to falling energy cost are partially responsible for payments to QFs in excess of the utility's true avoided cost. Using competitive bidding instead of posted prices has been proposed as a way to avoid this outcome. This report reviews bidding theory and explores four issues that arise in designing auction systems for the purchase of power from QFs under PURPA.

• Research Organization: Lawrence Berkeley Lab., CA (USA)
• DOE Contract Number: AC03-76SF00098
• OSTI ID: 5833278
• Report Number(s): DOE/SF/00098-H1; ON: DE88002826
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
BIDS
COGENERATION
CONTRACTS
COST
COST ESTIMATION
DEUS
DISPERSED STORAGE AND GENERATION
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY SYSTEMS
LAWS
NATIONAL ENERGY ACT
POWER
POWER GENERATION
PUBLIC UTILITIES
PUBLIC UTILITY REGULATORY POLICIES ACT
RECOMMENDATIONS
REGULATIONS
SALES
STEAM GENERATION