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Adaptation Of System Expansion To Marginal Cost Based Rates Using A Load Simulation Model

Author

Listed:
  • Glenn Jenkins

    (Queen's University, Kingston, On, Canada)

  • John Evans

Abstract

Changes in the pricing of electrical energy in Canada to encourage a more efficient use of the country’s resources will have an impact on both electric utilities and economy in general. The purpose of this paper is to outline a framework within which these impacts can be studied and evaluated. The following points will receive consideration: (a) The reasons why the present rate structure encourages an inefficient use of resources, (b) The role of a load simulation model in the planning of system expansion, (c) The important characteristics of the load simulation model we have developed, and (d) The integration of a utility’s planning with a consistent cost/benefit evaluation of alternative pricing policies. The evaluation procedure is discussed from the points of view of both the utility and the public.

Suggested Citation

  • Glenn Jenkins & John Evans, 1978. "Adaptation Of System Expansion To Marginal Cost Based Rates Using A Load Simulation Model," Development Discussion Papers 1978-07, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:32
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    More about this item

    Keywords

    Electricity demand simulation; electricity pricing;

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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