Empirical Analysis of Electricity Wheeling in Illinois

摘要

The report examines in detail the potential effect of wheeling on electrical rates for all customers. Empirical estimates of the costs of increasing levels of wheeling were prepared using a detailed model of electric utility production and finance. Scenarios were constructed for Commonwealth Edison and Illinois Power Companies. Results of the analysis show that moderate amounts of bypass for Commonwealth Edison (150 to 1000 MW), produce increases in average costs between 0.8% and 10.8%. For Illinois Power, wheeling levels of between 75 to 300 MW, produce increases between 3 and 14%. The results of the analysis suggest that the costs of bypass are closely linked to the capacity situation of the affected utility at the time wheeling takes place. Estimates were prepared of the secondary economic impacts of bypass. Losses in employment and personal income could be expected if rates were raised to 'reimburse' utilities for revenue losses. These losses would amount to less than one-half of one percent of total employment, personal income and Gross State Product.