Spot Pricing of Electricity

1. Front Matter

   Pages i-1

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2. Overview

   1. Overview

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 3-28

3. The Energy Marketplace

   1. Front Matter

      Pages 29-29

      PDF

   2. Behavior of Hourly Spot Prices

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 31-53

   3. Energy Marketplace Transactions

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 55-80

   4. Implementation

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 81-110

   5. A Possible Future: Deregulation

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 111-128

4. Theory of Hourly Spot Prices

   1. Front Matter

      Pages 129-129

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   2. Generation Only

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 131-149

   3. Generation and Network

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 151-176

   4. Revenue Reconciliation

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 177-203

   5. Spot Price Based Rates

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 205-236

   6. Optimal Investment Conditions

      • Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors, Roger E. Bohn

      Pages 237-254

5. Back Matter

   Pages 255-355

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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.

• Feedback
• Generator
• electricity
• interconnect
• model
• network
• production
• transmission

• Massachusetts Institute of Technology, USA

  Fred C. Schweppe, Richard D. Tabors

• Boston University, USA

  Michael C. Caramanis

• Harvard Business School, USA

  Roger E. Bohn

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