Most value planning: Estimating the net benefits of electric utility resource plans

Journal Article · · Energy Sources; (United States)

DOI:https://doi.org/10.1080/00908319408909089· OSTI ID:7168332

Hobbs, B F ^[1]; Wilson, A F ^[2]

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1. Case Western Reserve Univ., Cleveland, OH (United States). Dept. of Systems, Control, and Industrial Engineering
2. Seattle City Light, WA (United States). Resource Planning and Forecasting

Most US utility regulatory commissions require that electric utilities minimize cost when comparing supply-side and demand-side resources. However, utilities should also consider the effects of resource plans upon the benefits, or value'', that electricity consumers receive. A method for extending the traditional least cost'' objective to include value changes in electric utility resource planning is presented. This method uses the concept of consumers surplus to quantify the benefits of electric rate changes, take-back'' of energy savings in conservation programs, and increases in energy services provided by load building or valley-filling programs. In general, the method rewards resource portfolios that cause rates to move closer to marginal cost or increase the energy services provided. To illustrate its range of application, the most value'' objective is applied to screening of demand-side programs, evaluation of resource plans, and acid rain compliance planning. These examples confirm that optimizing net value can yield different resource portfolios than minimizing cost.

• OSTI ID: 7168332
• Journal Information: Energy Sources; (United States), Journal Name: Energy Sources; (United States) Vol. 16:3; ISSN 0090-8312; ISSN EGYSAO
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000 -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603* -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
CONTROL
COST BENEFIT ANALYSIS
DATA
DEMAND
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC UTILITIES
ENERGY CONSERVATION
EXPERIMENTAL DATA
INFORMATION
LOAD MANAGEMENT
MANAGEMENT
NUMERICAL DATA
PLANNING
POLLUTION CONTROL
POWER DEMAND
PUBLIC UTILITIES
RESOURCE MANAGEMENT