A win-win mechanism for electricity procurement by a local distribution company

Chi Keung WOO, Ira HOROWITZ, Gabe KWOK, Shui-Ki WAN, Weiwei WENG

Research output: Contribution to journalArticles

Abstract

A time-of-use rate option design allowing an LDC's customers to allocate their consumption to be billed at the fixed and daily-varying TOU rates offers a win-win mechanism for electricity procurement in the face of uncertain spot prices and hedging options. Even if all customers have the same risk preferences, the proposed mechanism is Pareto-superior to the tariffs and procurement strategies commonly used in North America. Copyright © 2012 Elsevier Inc. All rights reserved.

Original languageEnglish
Pages (from-to)27-35
JournalElectricity Journal
Volume26
Issue number1
Early online dateJan 2013
DOIs
Publication statusPublished - 2013

Citation

Woo, C. K., Horowitz, I., Kwok, G., Wan, S.-K., & Weng, W. (2013). A win-win mechanism for electricity procurement by a local distribution company. The Electricity Journal, 26(1), 27-35. doi: 10.1016/j.tej.2012.11.017

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