Efficient pricing of electric power service

Article Abstract:

Electricity prices have been set traditionally on the basis of equity allocation between investors and consumers in addition to cost accounting allocations. A more efficient pricing alternative is the short-run marginal cost (SRMSC) method. The SRMSC allows for the computation of prices based on the time and place of electricity consumption. The technology to implement SRMSC is available. It is basically the addition of pulse generators to electric meters in order to measure current levels. Usage of SRMSC will increase the efficiency of electricity production and consumption.

Methods, Industry Overview, Prices and rates, Pricing, Electric power

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Restructuring the electric industry

Article Abstract:

The present structures of the electric utility industry with respect to ownership, cooperative organizations and government regulation are discussed. The industry is experiencing continuous horizontal mergers and accelerating competition in its wholesale markets. Restructuring of the industry should take into account access to transmission services, the pricing of transmission services, allocation of risks and the efficient construction of transmission lines.

Management

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