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Bridging the Gap between Theory and Practice of Transmission Pricing

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Electricity Transmission Pricing and Technology

Abstract

The developing theory of transmission pricing has been stimulated by the accelerated growth of competitive bulk power markets that began about 20 years ago and the pricing problems these markets are creating. As long as most electric power systems were vertically integrated and self-sufficient, wholesale providers of requirements service, or distributors purchasing their full requirements, competitive bulk power transactions were limited in quantity and were largely short-term and nonfirm in nature. Transmission capacity was added by vertically integrated utilities to meet the owning systems’ needs. Revenue from the sale of transmission service was rarely as much as 5 percent of total transmission cost, or 1 percent of the utility’s total revenue.

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References

  • Hogan, William. “Contract Networks for Electric Power Transmission.” Journal of Regulatory Economies 4, no. 3 (September 1992).

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© 1996 Kluwer Academic Publishers

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Hughes, W.R., Felak, R. (1996). Bridging the Gap between Theory and Practice of Transmission Pricing. In: Einhorn, M., Siddiqi, R. (eds) Electricity Transmission Pricing and Technology. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-1804-7_2

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  • DOI: https://doi.org/10.1007/978-94-009-1804-7_2

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-7304-2

  • Online ISBN: 978-94-009-1804-7

  • eBook Packages: Springer Book Archive

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