A New Approach to Peak Load PricingManagerial and Decision Economics
AbstractThis paper explores an alternative method of ‘solving’ the problem of recurring time variable demands in a public utility context. It views the utility's load curve as a series of horizontal layers or ‘slices’ of varying lengths, rather than as a series of vertical slices as in the traditional approach. Several cases are examined, and traditional time-of-day pricing is shown to be inefficient or inapplicable in some of them, while ‘demand-layer’ pricing, based on horizontal slicing, is efficient. In still other cases, neither method of pricing is efficient.
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Citation InformationRobert S. Main. "A New Approach to Peak Load Pricing" Managerial and Decision Economics Vol. 2 Iss. 3 (1981) p. 139 - 144
Available at: http://works.bepress.com/robert_main/10/