The efficiency of TVA power distributors

Article Abstract:

The efficiency of electric power distributors of the Tennessee Valley Authority (TVA) was analyzed using linear programming and regression models. Nonparametric techniques were employed to measure efficiencies and to investigate the electrical distribution cost structure. It was found that majority of TVA distributors are reasonably efficient, although they seem to be more efficient in terms of technical and scale measures than in terms of cost and allocation measures. TVA distributors also have a tendency to overuse capital and labor but display remarkable efficiency in using purchased wholesale power.

Management Theory & Techniques, Management, Industrial efficiency, Economic efficiency, United States. Tennessee Valley Authority

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Modeling regional electric power markets and market power

Article Abstract:

It has been possible to devise a nonlinear, mathematical programming technique to estimate production decisions in a regional power structure with open access. It was shown that the optimal strategy for a two player game in the Louisiana power market is for one of the two players to be dominant and bid above marginal cost, with the other player taking the role of a follower obtaining additional profits from larger market-clearing prices.

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Efficient intertemporal utility pricing under uncertainty

Article Abstract:

Electric companies are competing against other alternatives for utility-produced power. Bigger utility consumers have been presented with economically viable choices that force utilities to reassess their pricing policies to prevent customers from trying fuel-based power sources. It has been established that long-run substitution alternatives cut the maximum percentage increase of price over marginal cost for noncore consumers.

Electric Utilities, Electric Power Generation, Transmission and Distribution, Prices and rates, Power resources, Peak load pricing

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