Transition Costs In The Electricity Industry
DOWNLOAD
Download Transition Costs In The Electricity Industry PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Transition Costs In The Electricity Industry book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Electricity Pricing In Transition
DOWNLOAD
Author : Ahmad Faruqui
language : en
Publisher: Springer Science & Business Media
Release Date : 2012-12-06
Electricity Pricing In Transition written by Ahmad Faruqui and has been published by Springer Science & Business Media this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-12-06 with Business & Economics categories.
Electricity Pricing In Transition is written to address the new issues facing utilities, retailers, regulators, and customers in the changing electricity market. It is organized into five sections. Section I deals with the new restructured organization that has emerged from yesterday's vertically integrated, regulated monopoly company. Section II deals with issues in competitive pricing. Section III reviews the role of demand response and product design in today's chaotic marketplace. Given the single importance of California's energy crisis and the fact that it will be studied for years to come, Section IV is devoted to studying the lessons learned from this crisis. The final section of the book deals with markets and regulations. This book will provide practitioners with guidance on how to avoid the major pitfalls in pricing electricity while the market is in transition by drawing upon the insights and lessons learned from the experience of others that are documented in this book.
Transition Costs In The Electricity Industry
DOWNLOAD
Author :
language : en
Publisher:
Release Date : 1996
Transition Costs In The Electricity Industry written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1996 with categories.
Progress is evident as the restructuring debate in the U.S. electricity industry completes its third year. The Federal Energy Regulatory Commission released a final rule on transmission open access-a key element to facilitate more efficient wholesale markets. The majority of states have initiated investigations or discussions on restructuring retail markets. Yet hurdles remain in formulating and implementing state-level restructuring proposals. Perhaps foremost among these hurdles is the issue of transition costs (the potential monetary losses experienced by utilities, consumers, and other economic actors as a result of government initiatives to transform electricity generation from a regulated to a competitive market). Transition costs are approximately equal to the difference between the embedded cost for generation services under traditional cost-of-service regulation and the competitive-market price for power. When government takes action to open current monopoly franchises to multiple generation providers and the competitive-market price falls below embedded generation costs, then transition costs will arise. Transition costs will include one or more of the following four classes of costs: (1) assets, primarily utility-owned power plants; (2) liabilities, primarily long-term power-purchase and fuel-supply contracts; (3) regulatory assets, including deferred expenses and costs that regulators allow utilities to place on their balance sheets; and (4) public-policy programs, such as energy efficiency, low-income programs, and research and development. What is at issue in the transition-cost debate? The debate turns on four questions: (1) How large are the potential transition costs from restructuring? (2) How are these costs estimated? (3) What, if anything, might be done to address these costs? (4) Who will ultimately pay for any remaining costs and how? This paper summarizes some of the key results from a project at ORNL that addresses these four questions.
Strategies To Address Transition Costs In The Electricity Industry
DOWNLOAD
Author :
language : en
Publisher:
Release Date : 1996
Strategies To Address Transition Costs In The Electricity Industry written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1996 with categories.
Transition costs are the potential monetary losses that electric- utility shareholders, ratepayers, or other parties might experience because of structural changes in the electricity industry. Regulators, policy analysts, utilities, and consumer groups have proposed a number of strategies to address transition costs, such as immediately opening retail electricity markets or delaying retail competition. This report has 3 objectives: identify a wide range of strategies available to regulators and utilities; systematically examine effects of strategies; and identify potentially promising strategies that may provide benefits to more than one set of stakeholders. The many individual strategies are grouped into 6 major categories: market actions, depreciation options, rate-making actions, utility cost reductions, tax measures, and other options. Of the 34 individual strategies, retail ratepayers have primary or secondary responsibility for paying transition costs in 19 of the strategies, shareholders in 12, wheeling customers in 11, taxpayers in 8, and nonutility suppliers in 4. Most of the strategies shift costs among different segments of the economy, although utility cost reductions can be used to offset transition costs. Most of the strategies require cooperation of other parties, including regulators, to be implemented successfully; financial stakeholders must be engages in negotiations that hold the promise of shared benefits. Only by rejecting ''winner-take-all'' strategies will the transition-cost issue be expeditiously resolved.
Strategies To Address Transition Costs In The Electricity Industry
DOWNLOAD
Author : Lester Baxter
language : en
Publisher:
Release Date : 1996
Strategies To Address Transition Costs In The Electricity Industry written by Lester Baxter and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1996 with Competition categories.
Transition Cost Issues For A Restructuring Us Electricity Industry
DOWNLOAD
Author : Lester Baxter
language : en
Publisher:
Release Date : 1997
Transition Cost Issues For A Restructuring Us Electricity Industry written by Lester Baxter and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1997 with categories.
Utilities regulators can use a variety of approaches to calculate transition costs. We categorized these approaches along three dimensions. The first dimension is the use of administrative vs. market procedures to value the assets in question. Administrative approaches use analytical techniques to estimate transition costs. Market valuation relies on the purchase price of particular assets to determine their market values. The second dimension concerns when the valuation is done, either before or after the restructuring of the electricity industry. The third dimension concerns the level of detail involved in the valuation, what is often called top-down vs. bottom-up valuation. This paper discusses estimation approaches, criteria to assess estimation methods, specific approaches to estimating transition costs, factors that affect transition-cost estimates, strategies to address transition costs, who should pay transition costs, and the integration of cost recovery with competitive markets.
Assessing Strategies To Address Transition Costs In A Restructuring Electricity Industry
DOWNLOAD
Author :
language : en
Publisher:
Release Date : 1996
Assessing Strategies To Address Transition Costs In A Restructuring Electricity Industry written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1996 with categories.
Restructuring the US electricity industry has become the nation's central energy issue for the 1990s. Restructuring proposals at the federal and state levels focus on more competitive market structures for generation and the integration of transmission within those structures. The proposed move to more competitive generation markets will expose utility costs that are above those experienced by alternative suppliers. Debate about these above-market, or transition, costs (e.g., their size, who will pay for them and how) has played a prominent role in restructuring proceedings. This paper presents results from a project to systematically assess strategies to address transition costs exposed by restructuring the electricity industry.
Different Approaches To Estimating Transition Costs In The Electric Utility Industry
DOWNLOAD
Author :
language : en
Publisher:
Release Date : 1995
Different Approaches To Estimating Transition Costs In The Electric Utility Industry written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1995 with categories.
The term ''transition costs'' describes the potential revenue shortfall (or welfare loss) a utility (or other actor) may experience through government-initiated deregulation of electricity generation. The potential for transition costs arises whenever a regulated industry is subject to competitive market forces as a result of explicit government action. Federal and state proposals to deregulate electricity generation sparked a national debate on transition costs in the electric-utility industry. Industry-wide transition cost estimates range from about $20 billion to $500 billion. Such disparate estimates raise important questions on estimation methods for decision makers. This report examines different approaches to estimating transition costs. The study has three objectives. First, we discuss the concept of transition cost. Second, we identify the major cost categories included in transition cost estimates and summarize the current debate on which specific costs are appropriately included in these estimates. Finally, we identify general and specific estimation approaches and assess their strengths and weaknesses. We relied primarily on the evidentiary records established at the Federal Energy Regulatory Commission and the California Public Utilities Commission to identify major cost categories and specific estimation approaches. We also contacted regulatory commission staffs in ten states to ascertain estimation activities in each of these states. We refined a classification framework to describe and assess general estimation options. We subsequently developed and applied criteria to describe and assess specific estimation approaches proposed by federal regulators, state regulators, utilities, independent power companies, and consultants.
Transition Cost Issues For Us Electricity Utilities1
DOWNLOAD
Author : Eric Hirst
language : en
Publisher:
Release Date : 2011
Transition Cost Issues For Us Electricity Utilities1 written by Eric Hirst and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011 with categories.
Abstract The US electric-utility industry is in the midst of major changes. These changes include deintegration of the industry and substantial increases in competition. A major consequence of these changes is the exposure of transition costs. These costs, which amount to $100-$200 billion nationwide, reflect the differences between regulated prices for electricity generation and the prices that might occur in fully competitive power markets. The large financial stakes, equivalent to nearly the total value of US electric-utility common stock, guarantee controversy. Debates occur over transition-cost amounts; analytical and market methods to estimate these costs; the assets and liabilities to include in such calculations; the assumptions used in developing these estimates; approaches that can be used to offset some of these costs; the allocation of the remaining costs among utility shareholders, different classes of retail customers, independent power producers and other wholesale suppliers, and taxpayers; and appropriate cost-recovery mechanisms.
Energy Market And Energy Transition Dynamics And Prospects
DOWNLOAD
Author : Xunpeng (Roc) Shi
language : en
Publisher: Frontiers Media SA
Release Date : 2021-06-04
Energy Market And Energy Transition Dynamics And Prospects written by Xunpeng (Roc) Shi and has been published by Frontiers Media SA this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021-06-04 with Technology & Engineering categories.
Transition Cost Issues For A Restructuring U S Electricity Industry
DOWNLOAD
Author : Lester Baxter
language : en
Publisher:
Release Date : 1997
Transition Cost Issues For A Restructuring U S Electricity Industry written by Lester Baxter and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1997 with Competition categories.
Utilities regulators can use a variety of approaches to calculate transition costs. We categorized these approaches along three dimensions. The first dimension is the use of administrative vs. market procedures to value the assets in question. Administrative approaches use analytical techniques to estimate transition costs. Market valuation relies on the purchase price of particular assets to determine their market values. The second dimension concerns when the valuation is done, either before or after the restructuring of the electricity industry. The third dimension concerns the level of detail involved in the valuation, what is often called top-down vs. bottom-up valuation. This paper discusses estimation approaches, criteria to assess estimation methods, specific approaches to estimating transition costs, factors that affect transition-cost estimates, strategies to address transition costs, who should pay transition costs, and the integration of cost recovery with competitive markets.