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Article
A New Approach to Peak Load Pricing
Managerial and Decision Economics
  • Robert S. Main, Butler University
Document Type
Article
Publication Date
1-1-1981
Disciplines
DOI
http://dx.doi.org/10.1002/mde.4090020303
Abstract
This 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.
Rights

Version of Record can be found through Wiley.

Citation Information
Robert 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/