Intertemporal Allocation of Capital Costs in Electric Utility Capacity Expansion Planning under Uncertainty

Article Abstract:

Marginal cost pricing in the electric utility industry is studied. The area emphasized is the allocation of capital costs associated with an optimal capacity expansion plan. Under the first condition studied, there is a finite load pattern with a discrete probability distribution. In the second scenario, the load takes different forms at different times as a classic peak load pricing problem. A model is developed for capital cost allocation under uncertainty. A marginal cost pricing strategy for sharing capital costs is determined. An appendix gives proofs and notation. Graphs are included.

---

Comparison of Alternative Utility Functions in Portfolio Selection Problems

Article Abstract:

The effect of various utility functions and parameter values on the optimal composition of a risky investment portfolio is examined. Normally distributed assets are presumed. The results agree with other studies for investors with particular risk-bearing attitudes. The results show that utility functions with different functional forms and parameter values but similar risk aversion have similar optimal portfolios. Convenient utility functions can be used over horizons of up to one year. Tables and graphs display computational results.

Management science, Portfolio management, Risk management, Stock markets, Models, Stock Market, Approximation, Risk Analysis

---

Intertemporal Allocation of Capital Costs in Electric Utility Capacity Expansion Planning Under Uncertainty

Article Abstract:

Marginal cost pricing in the electric utility industry is studied. The allocation of capital costs to achieve optimal capacity expansion is examined. First, a finite number of local patterns with a discrete probability distribution is assumed. The load may take a different form at different times of the day in a second scenario. The identical marginal cost analysis characterizes a pricing strategy. A linear program is developed to provide computational results. Graphs show breakdown points and load curves.

Linear programming, Algorithms, Business planning, Algorithm, Electric power plants, Cost, Energy, Utilities, Power Plants, Expansion, Capacity Management

Similar abstracts:

• Abstracts: Multivariate Stratified Sampling by Optimization. An Optimization Model for Production Costing in Electric Utilities
• Abstracts: One-Stop Shopping Forecast for All Business Electronics. Numbers Grow but Many Still Don't Own a Computer
• Abstracts: Improving decision making by means of a marketing decision support system. Ranking in Tournaments and Group Decision Making
• Abstracts: Simulation designs for the estimation of quadratic response surface gradients in the presence of model misspecification

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.