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 language | English |
|---|---|
| Pages (from-to) | 27-35 |
| Journal | Electricity Journal |
| Volume | 26 |
| Issue number | 1 |
| Early online date | Jan 2013 |
| DOIs | |
| Publication status | Published - 2013 |