Management of busbar costs and spending tradeoffs for the transition to competitive markets in electricity
Abstract
Competition is changing the fundamental basis for doing business in the electricity generation market. As the market moves toward competitive market conditions, electricity will be viewed increasingly as a commodity--not only supplied to customers within a utility`s service area, but brokered and marketed outside its area as well. With movement toward retail wheeling being considered in California, Michigan, and New York, it may soon become a reality as well. This means that a utility can no longer feel secure as the monopoly supplier of electricity within its own franchise area. To remain the main supplier in its current service area and compete for customers in other service areas, utilities will need to understand and examine all the components of ``busbar costs`` at its generating units. As competition drives the market to marginal costs, generating units with costs exceeding the market clearing price for electricity may soon have a limited role in the generation market. As the industry evolves, competition in the marketplace will force uneconomic plants to reduce costs or go out of business. This paper discusses results of studies addressing the evaluation of cost effectiveness, benchmarking of cost-efficiency, and development of marginal cost curves for busbar costs based onmore »
- Authors:
-
- Applied Economic Research Co., Inc., New York, NY (United States)
- Publication Date:
- OSTI Identifier:
- 94240
- Report Number(s):
- CONF-950414-
Journal ID: ISSN 0097-2126; TRN: 95:018765
- Resource Type:
- Conference
- Resource Relation:
- Conference: 57. annual American power conference, Chicago, IL (United States), 18-20 Apr 1995; Other Information: PBD: 1995; Related Information: Is Part Of Proceedings of the American Power Conference: Volume 57-I; PB: 874 p.
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 24 POWER TRANSMISSION AND DISTRIBUTION; INTERCONNECTED POWER SYSTEMS; POWER TRANSMISSION; COST; ELECTRIC POWER; MARKET; ECONOMICS; COMPETITION
Citation Formats
Corio, M R, and Boyd, G. Management of busbar costs and spending tradeoffs for the transition to competitive markets in electricity. United States: N. p., 1995.
Web.
Corio, M R, & Boyd, G. Management of busbar costs and spending tradeoffs for the transition to competitive markets in electricity. United States.
Corio, M R, and Boyd, G. 1995.
"Management of busbar costs and spending tradeoffs for the transition to competitive markets in electricity". United States.
@article{osti_94240,
title = {Management of busbar costs and spending tradeoffs for the transition to competitive markets in electricity},
author = {Corio, M R and Boyd, G},
abstractNote = {Competition is changing the fundamental basis for doing business in the electricity generation market. As the market moves toward competitive market conditions, electricity will be viewed increasingly as a commodity--not only supplied to customers within a utility`s service area, but brokered and marketed outside its area as well. With movement toward retail wheeling being considered in California, Michigan, and New York, it may soon become a reality as well. This means that a utility can no longer feel secure as the monopoly supplier of electricity within its own franchise area. To remain the main supplier in its current service area and compete for customers in other service areas, utilities will need to understand and examine all the components of ``busbar costs`` at its generating units. As competition drives the market to marginal costs, generating units with costs exceeding the market clearing price for electricity may soon have a limited role in the generation market. As the industry evolves, competition in the marketplace will force uneconomic plants to reduce costs or go out of business. This paper discusses results of studies addressing the evaluation of cost effectiveness, benchmarking of cost-efficiency, and development of marginal cost curves for busbar costs based on the development and aggregation of the three key measures which determine the cost and level of output (generation): (1) reliability; (2) heat rate; and (3) planned outage factor.},
doi = {},
url = {https://www.osti.gov/biblio/94240},
journal = {},
issn = {0097-2126},
number = ,
volume = ,
place = {United States},
year = {Fri Sep 01 00:00:00 EDT 1995},
month = {Fri Sep 01 00:00:00 EDT 1995}
}