Supply, Storage, and Service Reliability Decisions by Gas Distribution Utilities: A Chance-Constrained Approach

Article Abstract:

Trade-offs among purchases, storage, and service reliability decisions faced by natural gas distribution utilities are modeled. Demand is uncertain due to weather conditions. Load leveling is encouraged in pricing contracts. A chance-constrained cost minimization problem definition explores the various trade offs. Computational results show the breakeven points in storage costs under which various policies become feasible and savings can be achieved. Graphs show monthly use requirements, purchases and storage flows. They also show storage saturation rates and storage capacity costs-benefits. Tables present computational results.

Mathematical Programming, Minimization

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Supply, Storage, and Service Reliability Decisions by Gas Distribution Utilities: A Chance Constrained Approach: Comments on Guldmann's Paper

Article Abstract:

Guldmann's model indicated very small benefits over costs for the optimal decision versus a wide collection of nonoptimal solutions. Savings seem to be about one per cent of costs. It indicated that for stable markets for gas there is little need for extensive decision analysis. An objective analysis is needed to justify rates in a regulated industry. Analysis is also needed to help in exploration decisions. Gas storage will become more important in the future and more analytic methodologys will need to be developed, not fewer.

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The Budget-Limit Effect on the Delegation of the Capital Budgeting Authority: The Case of Sequential and Frequent Investment Decisions

Article Abstract:

The choice of centralization and decentralization has interested executives and researchers. Attention is focused on long-term capital budgeting in a decentralized organization. Typically, the more limited capital resources are, the larger should be the set of opportunities, and the more centralized should the decision process be. However, this study shows that under certain conditions, decentralization may produce better results. Several examples are used to illustrate the model.

Investments, Capital investments, Business planning, Models, Capital Investment, Budgeting, Decentralization, Centralization

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