Abstract
The principal issue addressed in this paper deals with the price profile for a regulated public utility when demand and supply vary spatially and temporally and when demands are temporally interdependent. No simple cost based solution proves possible. Price is determined as a weighted average of marginal operating costs in all periods, capital costs in all periods, and delivery costs.
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Uri, N.D. The effects of intertemporal demand dependencies on optimal electrical energy pricing: An extension. Ann Reg Sci 13, 47–53 (1979). https://doi.org/10.1007/BF01284779
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DOI: https://doi.org/10.1007/BF01284779