Advertisement

Self-Designed Electric Products

  • Robert Camfield
  • David Glyer
  • John Kalfayan
Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 42)

Abstract

The task of setting prices for electric service providers has evolved through at least three paradigms. These pricing modi operandi include: 1) cost-of-service class allocation, 2) marginal cost-based service options, and 3) product design packages based upon customer preferences. We suggest that a fourth approach, Self-Designed Products, resides within the realm of current capabilities.

The notion of a Self-Designed Product is the facility of offering customers the option of developing customized price and service arrangements, within profitability constraints. We envision the facility to be provided via a web site. Upon accessing the site, a customer would be presented with a menu of retail product attributes. The customer selects the level for each attribute. Given the set of selected attribute levels, an evaluation engine calculates prices by solving a constrained optimization problem, using historical loads and prices. The analysis incorporates the customer’s expected load response behavior and prospective economic costs-to-serve with uncertainty.

Keywords

Electricity Market Load Profile Electricity Service Evaluation Engine Price Term 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Robert Camfield
    • 1
  • David Glyer
    • 1
  • John Kalfayan
    • 1
  1. 1.Laurits R. Christensen Associates, Inc.USA

Personalised recommendations