Department of Economics
A win–win mechanism for electricity procurement by a local distribution company
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. © 2012 Elsevier Inc.
Source Publication Title
Woo, C. K., Ira Horowitz, Gabe Kwok, Shui-Ki Wan, and Weiwei Weng. "A win–win mechanism for electricity procurement by a local distribution company." Electricity Journal 26.1 (2013): 27-35.