Electricity Marginal Cost Pricing
Applications in Eliciting Demand Responses

Allows regulators, energy economists, and engineers to get "a feel" for the methods with which efficient prices are derived in today's challenging electricity market

Monica Greer (Author)

9780123851345

Hardback, published 13 March 2012

366 pages, 50
23.3 x 15.6 x 2.5 cm, 0.58 kg

"Having trouble comprehending your electric bill? Think you can evaluate motor efficiency savings by using one simple number for price per kilowatt-hour? This book will enlighten you." --Electrical Apparatus, October 2012

Packed with case studies and practical real-world examples, Electricity Marginal Cost Pricing Principles allows regulators, engineers and energy economists to choose the pricing model that best fits their individual market. Written by an author with 13 years of practical experience, the book begins with a clear and rigorous explanation of the theory of efficient pricing and how it impacts investor-owned, publicly-owned, and cooperatively-owned utilities using tried and true methods such as multiple-output, functional form, and multiproduct cost models. The author then moves on to include self-contained chapters on applying estimating cost models, including a cubic cost specification and policy implications while supplying actual data and examples to allow regulators, energy economists, and engineers to get a feel for the methods with which efficient prices are derived in today’s challenging electricity market.

1. Introduction2. The Theory of Natural Monopoly3. Regulation and Policies pertaining to the Electric Utility Industry4. Economics and Econometrics of Cost Models5. Estimating Cost Models6. Case Study: Cubic Cost Model to Estimate the Marginal Cost of Providing Electricity to End Users7. Case Study: Cost Models to Illustrate Price and Substitution Elasticities Using KLEM Data8. The Theory of Efficient Pricing9. The Price and Substitution Elasticities of Demand Models10. Case Study: Real-Time Pricing of Electricity

Subject Areas: Electric motors [THRM], Power generation & distribution [THRB], Electrical power industries [KNBL], Energy industries & utilities [KNB], Economic forecasting [KCJ]