Skip to main content
Log in

The effects of intertemporal demand dependencies on optimal electrical energy pricing: An extension

  • Published:
The Annals of Regional Science Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  1. Atkinson, S. E., “A Preliminary Analysis of FEA's Time-of-Day Electricity Pricing Experiments,”Journal of Econometrics, forthcoming.

  2. Electric Power Research Institute,Proceedings of a Workshop on Modelling and Analysis of Electricity by Time-of-Day, June 1978.

  3. Hotelling, H., “The General Welfare in Relation to Problems of Taxation and of Railway and Utility Rates,”Econometrica, Vol. 6 (1938), pp. 242–269.

    Google Scholar 

  4. Lau, L. J. and L. A. Lillard, “A Random Response Model of the Demand for Electricity by Time-of-day,” in Reference [2].

  5. Pressman, I., “A Mathematical Formulation of the Peak-Load Pricing Problem,”The Bell Journal of Economics and Management Science, Vol. 1, No. 2 (Autumn 1970), pp. 304–326.

    Google Scholar 

  6. Turvey, R. and D. Anderson,Electricity Economics, The Johns Hopkins University Press, Baltimore, 1977.

    Google Scholar 

  7. Uri, N. D., “Optimal Pricing of Public Utility Service When Consumers and Producers are Spatially Diffuse,”The Annals of Regional Science, Vol. IX, No. 2 (July 1977), pp. 55–64.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Additional information

The views expressed are those of the author and do not necessarily represent the policies of the Department of Energy or the views of other Department of Energy staff members.

Rights and permissions

Reprints and permissions

About this article

Cite this article

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

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01284779

Keywords

Navigation