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Title: Excess capacity in utility industries: an inventory theoretic approach

Abstract

An analogous model similar to the economic ordering quantity inventory model is used to explain the factors involved in ordering and planning utility capacity and the reasons why a utility may be carrying excess capacity at a particular time. Inventory models may help explain the optimal level of system reserve margins on the grounds that carrying forward capacity leads to an analysis of a rational and equitable method of adding the reserved capacity to the rate base. Although utilities may carry more capacity than is apparently needed, such capacity may not be excess, and its existence should be recognized by the regulatory commission. 18 references, 3 figures, 1 table.

Authors:
Publication Date:
Research Org.:
Lehigh Univ., Bethlehem, PA
OSTI Identifier:
7121980
Resource Type:
Journal Article
Journal Name:
Land Econ.; (United States)
Additional Journal Information:
Journal Volume: 60:1
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; CAPACITY; PLANNING; RATE STRUCTURE; ELECTRIC UTILITIES; ECONOMIC ANALYSIS; ECONOMICS; PUBLIC UTILITIES; 290100* - Energy Planning & Policy- Energy Analysis & Modeling; 296000 - Energy Planning & Policy- Electric Power

Citation Formats

Schwartz, E. Excess capacity in utility industries: an inventory theoretic approach. United States: N. p., 1984. Web. doi:10.2307/3146091.
Schwartz, E. Excess capacity in utility industries: an inventory theoretic approach. United States. https://doi.org/10.2307/3146091
Schwartz, E. 1984. "Excess capacity in utility industries: an inventory theoretic approach". United States. https://doi.org/10.2307/3146091.
@article{osti_7121980,
title = {Excess capacity in utility industries: an inventory theoretic approach},
author = {Schwartz, E},
abstractNote = {An analogous model similar to the economic ordering quantity inventory model is used to explain the factors involved in ordering and planning utility capacity and the reasons why a utility may be carrying excess capacity at a particular time. Inventory models may help explain the optimal level of system reserve margins on the grounds that carrying forward capacity leads to an analysis of a rational and equitable method of adding the reserved capacity to the rate base. Although utilities may carry more capacity than is apparently needed, such capacity may not be excess, and its existence should be recognized by the regulatory commission. 18 references, 3 figures, 1 table.},
doi = {10.2307/3146091},
url = {https://www.osti.gov/biblio/7121980}, journal = {Land Econ.; (United States)},
number = ,
volume = 60:1,
place = {United States},
year = {Wed Feb 01 00:00:00 EST 1984},
month = {Wed Feb 01 00:00:00 EST 1984}
}