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Performance-Based Pricing for Nucleaer Power Plants

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  • Yeon-Koo Che and Geoffrey Rothwell

Abstract

State public utility commissions in the United States have implemented incentive regulations to promote the operating efficiency of nuclear power plants. This paper surveys these incentive programs, focusing on the perfomance-based pricing approach. Our findings suggest that the performance-based price should be set between the electric utility's avoided cost and the marginal cost of generating electricity at the nuclear power plant.

Suggested Citation

  • Yeon-Koo Che and Geoffrey Rothwell, 1995. "Performance-Based Pricing for Nucleaer Power Plants," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 57-78.
    • Handle: RePEc:aen:journl:1995v16-04-a03
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    References listed on IDEAS

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    1. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, April.
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