Utility Spot-Pricing Study: Wisconsin.

摘要

This research project evaluated the potential for spot pricing of electric power for industrial customers in Wisconsin from the perspective both of the utility and its customers. 1980 demand level and tariff structures were assumed. The utility system was simplified to include limited interconnection and exchange of power with surrounding utilities. The analysis was carried out using an hourly simulation model, ENPRO, to evaluate the marginal operating cost for any hour. The industrial energy demand was adjusted to reflect the price (relative to the present time-of-use pricing system). The simulation was then rerun to calculate the change in revenues (and customer bill) and the amount of consumer surplus generated. A second analysis assumed a 5% increase in demand with no increase in capacity. Each analysis was carried out for an assumed low and high industrial response to price changes. Analyses were also performed to evaluate the likely implications of a flexible pricing scheme relative to a utility system with a greater level of oil generation. The results of the analysis showed that the flexible pricing system produced both utility and customer savings. At lower capacity utilization the utility recovered less revenue than it did under the present time-of-use rates. While at higher utilization it recovered more. Under all scenarios tested, consumer surplus benefits were five to ten times greater than were simple fuel savings for the utility. These results suggest that the ability of the customer to choose his pattern more flexibly holds a significant potential for customers to achieve greater surplus--even if their bill may in fact increase. These results are discussed in detail as are a number of customer bill impact considerations and the issues associated with revenue reconciliation. (ERA citation 08:018109)