A "quick look up guide," Electricity Cost Modeling Calculations places the relevant formulae and calculations at the reader's finger tips. In this book, theories are explained in a nutshell and then the calculation is presented and solved in an illustrated, step-by-step fashion. A valuable guide for new engineers, economists (or forecasters), regulators, and policy makers who want to further develop their knowledge of best practice calculations techniques or experienced practitioners (and even managers) who desire to acquire more useful tips, this book offers expert advice for using such cost models to determine optimally-sized distribution systems and optimally-structured power supplying entities. In other words, this book provides an Everything-that-you-want-to-know-about-cost-modelling-for-electric-utilities (but were afraid to ask) approach to modelling the cost of supplying electricity. In addition, the author covers the concept of multiproduct and multistage cost functions, which are appropriate in modelling the cost of supplying electricity. The author has done all the heavy number-crunching, and provides the reader with real-world, practical examples of how to properly quantify the costs associated with providing electric service, thus increasing the accuracy of the results and support for the policy initiatives required to ensure the competitiveness of the power suppliers in this new world in which we are living. The principles contained herein could be employed to assist in the determination of the cost-minimizing amount of output (i.e., electricity), which could then be used to determine whether a merger between two entities makes sense (i.e., would increase profitability). Other examples abound: public regulatory commissions also need help in determining whether mergers (or divestitures) are welfare-enhancing or not; ratemaking policies depend on costs and properly determining the costs of supplying electric (or gas, water, and local telephone) service. Policy makers, too, can benefit in terms of optimal market structure; after all, the premise of deregulation of the electric industry was predicated on the idea that generation could be deregulated. Unfortunately, the economies of vertical integration between the generation. - A comprehensive guide to the cost issues surrounding the generation, transmission, and distribution of electricity - Real-world examples that are practical, meaningful, and easy to understand - Policy implications and suggestions to aid in the formation of the optimal market structure going forward (thus increasing efficiency of electric power suppliers) - The principles contained herein could be employed to assist in the determination of the cost-minimizing amount of output

Packed with case studies and practical real-world examples, Electricity Marginal Cost Pricing Principles allows regulators, engineers and energy economists to choose the pricing model that best fits their individual market. Written by an author with 13 years of practical experience, the book begins with a clear and rigorous explanation of the theory of efficient pricing and how it impacts investor-owned, publicly-owned, and cooperatively-owned utilities using tried and true methods such as multiple-output, functional form, and multiproduct cost models. The author then moves on to include self-contained chapters on applying estimating cost models, including a cubic cost specification and policy implications while supplying actual data and examples to allow regulators, energy economists, and engineers to get a feel for the methods with which efficient prices are derived in today's challenging electricity market. - A guide to cost issues surrounding the generation, transmission, and distribution of electricity - Clearly explains cost models which can yield the marginal cost of supplying electricity to end-users - Real-world examples that are practical, meaningful, and easy to understand - Explans the policy implications of each example - Provide suggestions to aid in the formation of the optimal market price

There is a need for fundamental changes in the ways society views electric energy. Electric energy must be treated as a commodity which can be bought, sold, and traded, taking into account its time-and space-varying values and costs. This book presents a complete framework for the establishment of such an energy marketplace. The framework is based on the use of spot prices. In general terms: o An hourly spot price (in dollars per kilowatt hour) reflects the operating and capital costs of generating, transmitting and distributing electric energy. It varies each hour and from place to place. o The spot price based energy marketplace involves a variety of utility-customer transactions (ranging from hourly varying prices to long-term, multiple-year contracts), all of which are based in a consistent manner on hourly spot prices. These transactions may include customers selling to, as well as buying from, the utility. The basic theory and practical implementation issues associated with a spot price based energy marketplace have been developed and discussed through a number of different reports, theses, and papers. Each addresses only a part of the total picture, and often with a somewhat different notation and terminology (which has evolved in parallel with our growing experience). This book was xvii xviii Preface written to serve as a single, integrated sourcebook on the theory and imple mentation of a spot price based energy marketplace.

Electricity, supplied reliably and affordably, is foundational to the U.S. economy and is utterly indispensable to modern society. However, emissions resulting from many forms of electricity generation create environmental risks that could have significant negative economic, security, and human health consequences. Large-scale installation of cleaner power generation has been generally hampered because greener technologies are more expensive than the technologies that currently produce most of our power. Rather than trade affordability and reliability for low emissions, is there a way to balance all three? The Power of Change: Innovation for Development and Deployment of Increasingly Clean Energy Technologies considers how to speed up innovations that would dramatically improve the performance and lower the cost of currently available technologies while also developing new advanced cleaner energy technologies. According to this report, there is an opportunity for the United States to continue to lead in the pursuit of increasingly clean, more efficient electricity through innovation in advanced technologies. The Power of Change: Innovation for Development and Deployment of Increasingly Clean Energy Technologies makes the case that America's advantagesâ€"world-class universities and national laboratories, a vibrant private sector, and innovative states, cities, and regions that are free to experiment with a variety of public policy approachesâ€"position the United States to create and lead a new clean energy revolution. This study focuses on five paths to accelerate the market adoption of increasing clean energy and efficiency technologies: (1) expanding the portfolio of cleaner energy technology options; (2) leveraging the advantages of energy efficiency; (3) facilitating the development of increasing clean technologies, including renewables, nuclear, and cleaner fossil; (4) improving the existing technologies, systems, and infrastructure; and (5) leveling the playing field for cleaner energy technologies. The Power of Change: Innovation for Development and Deployment of Increasingly Clean Energy Technologies is a call for leadership to transform the United States energy sector in order to both mitigate the risks of greenhouse gas and other pollutants and to spur future economic growth. This study's focus on science, technology, and economic policy makes it a valuable resource to guide support that produces innovation to meet energy challenges now and for the future.

Presents all the key elements and tools necessary to plan and operate efficient electric utility power systems. Seven sections address economics, finance, and regulation; industrial power economics; load demand and management; reliability of the generation system; cost of production in the generation system; capacity planning; and transmission planning. Each section addresses power system theory and principles and applies them to realistic utility examples. Results from solved examples are expanded to illustrate the sensitivity and direction of key parameters.

The cost of wood-generated electricity is dependent upon a number of economic and environmental factors, many of which are uncertain by nature and difficult to predict. A report of the cost of wood-generated electricity by Allan J. Schultz for the Vermont Public Service Board (Schultz 1977) recognizes these uncertainties, but does not adequately account for them in its cost projections. Schultz's analysis is extended here to include the full range of values these projections could take. A number of statewide benefits are explored which might be provided Vermont by a wood-fired plant -- employment of state residents, increases in tax income, and several nonquantifiable factors. In an attempt to show how these benefits might be credited back to the plant to reduce its operating expenses, two mechanisms are introduced, transfer payments and public financing, that could bring the cost of wood-fired power down to levels competitive with other fuels. The conclusion is that, while there is a great degree of uncertainty in estimating the cost of electricity generated with wood, it is possible and desirable to assign a range of possible future costs to this power. The best analysis shows that, over at least part of this range, wood-generated electricity is cost competitive.

This book describes recent breakthroughs that promise major cost reductions in solar energy production in a clear and highly accessible manner. The author addresses the three key areas that have commonly resulted in criticism of solar energy in the past: cost, availability, and variability. Coverage includes cutting-edge information on recently developed 40 efficient solar cells, which can produce double the power of currently available commercial cells. The discussion also highlights the potentially transformative emergence of opportunities for integration of solar energy storage and natural gas combined heat and power systems. Solar energy production in the evening hours is also given fresh consideration via the convergence of low cost access to space and the growing number of large terrestrial solar electric power fields around the world. Dr. Fraas has been active in the development of Solar Cells and Solar Electric Power Systems for space and terrestrial applications since 1975. His research team at Boeing demonstrated the first GaAs/GaSb tandem concentrator solar cell in 1989 with a world record energy conversion efficiency of 35, garnering awards from Boeing and NASA. He has over 30 years of experience at Hughes Research Labs, Chevron Research Co, and the Boeing High Technology Center working with advanced semiconductor devices. In a pioneering paper, he proposed the InGaP/GaInAs/Ge triple junction solar cell predicting a cell terrestrial conversion efficiency of 40 at 300 suns concentration. Having become today’s predominant cell for space satellites, that cell is now entering high volume production for terrestrial Concentrated Photovoltaic (CPV) systems. Since joining JX Crystals, Dr. Fraas has pioneered the development of various thermophotovoltaic (TPV) systems based on the new GaSb infrared sensitive PV cell. Dr. Fraas holds degrees from Caltech (B.Sc. Physics), Harvard (M. A. Applied Physics), and USC (Ph.D. EE).