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
Link to Publisher's Edition
Woo, C., Horowitz, I., Kwok, G., Wan, S., & Weng, W. (2013). A win–win mechanism for electricity procurement by a local distribution company. Electricity Journal, 26 (1), 27-35. https://doi.org/10.1016/j.tej.2012.11.017