Capacity rationing and fixed cost collection

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This paper proposes a simple load management program with a two part tariff to ration an electric utility's installed capacity and to collect its fixed costs under asymmetric information and demand uncertainty. Because of its simplicity, the program is a practical alternative to spot pricing and rationing schemes with highly nonlinear rate structures. Copyright © 1991 International Association for Energy Economics.
Original languageEnglish
Pages (from-to)153-164
JournalThe Energy Journal
Issue number2
Publication statusPublished - 1991


Woo, C.-K. (1991). Capacity rationing and fixed cost collection. The Energy Journal, 12(2), 153-164.


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