Peak Load and Capacity Pricing [electronic resource] : Theory and Practice in Electricity /
Harris, C.author.
Peak Load and Capacity Pricing lays out clear pricing strategies for understanding peak load and capacity pricing structures, further cementing electricity's role as an asset class with fixed and variable costs.
Description based upon print version of record.
Cover; Title; Copyright; Dedication; Contents; List of Figures; Foreword; Acknowledgments; 1 Introduction; 2 The Modeling Framework; 2.1 Nomenclature; 2.2  Basic Modeling of Consumption; 2.3  Basic Model of Physical/Production; 2.4  Other Aspects of Modeling; 3 The Framework and Development of Peak Load Pricing; 3.1  Basic Peak Load Pricing Theory; 3.2  Early Days of Tariff Evolution; 3.3  Postwar Theory and Application of Capacity Charging-The Drèze Approach; 3.4  Elastic Demand for Capacity- The Steiner Framework; 3.5  Efficiency of Rationing of Demand
3.6  Pricing under Stochastic Demand- The Brown and Johnson Framework3.7  Modeling under Variable Rationing Efficiency-The Visscher Framework; 3.8  Demand for Capacity with Stochastic Elastic Demand-the Carlton Framework; 3.9  Optimal Pricing, Capacity and the Technology Frontier-Crew and Kleindorfer; 3.10  Further Development of the Price Vector-from Dansby; 3.11  Stochastic Variation in both Production and Demand-the Chao Framework; 3.12  Discussion of the Pricing Analyses; 4 Relaxing the Hard Capacity Constraint; 4.1 Introduction; 4.2 The Hirshleifer Framework
4.3 Optimizing with Decreasing Returns to Scale-The Panzar Framework4.4 Concluding Discussion of Soft Constraints; 5 Modeling Capacity Using Derivatives; 5.1 Power Markets; 5.2 Single Period-Modeling Using Options of "European" Type; 5.3 Modeling System Operator Option Procurement in the One-Period Setting; 5.4 Modeling More Complex Options in the One-Period Setting; 5.5 Many Periods-Modeling Using Options of "American" Type; 5.6 Modeling System Operator Option Procurement in the Unrestricted Many-Period Setting; 5.7 Modeling Many Periods under Constraint Using Options of "Swing" Type
5.8 Modeling System Operator Option Procurement in the Restricted Many-Period Setting5.9 Modeling Real Assets; 5.10 Modeling Prices and Price Dynamics; 6 Capacity Mechanisms; 6.1 Types of Capacity Mechanism; 6.2 Development of the Key Variables in the ICAP Model; 6.3 Development of ICAP toward the Use of Strike Prices; 6.4 Division of the Market to Regimes; 6.5 General Development of Capacity Mechanisms toward Energy-Only Markets; 7 The Power Complex; 7.1 The Demand Side; 7.2  Transmission and Interconnection; 7.3 Peak Load Pricing in Distribution Charging
7.4 Commercial Arrangements on Lost Load8 Final Comments; Notes; References; Index
Includes bibliographical references and index.
Peak Load and Capacity Pricing lays out clear pricing strategies for understanding peak load and capacity pricing structures, further cementing electricity's role as an asset class with fixed and variable costs.
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