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Planning the production of electrical energy
Authors:Noel D Uri
Institution:Office of Conservation and Solar Application, Department of Energy, Washington DC 20461, U.S.A.
Abstract:In the paper, an effort is made to answer many of the perplexing questions concerning pricing and investment decisions that must be faced if the development of the electrical energy industry in the United States is to be carried on within a fully integrated or at least partially integrated framework.By using an intertemporal-spatial equilibrium model, solutions are suggested to such problems as the efficient pricing, allocation, and additions to generating capacity facing the electrical energy industry when peak demands occur at different times in different regions, when regions have different kinds and sizes of generating plants and are endowed with resources of different costs and availabilities, when prices do not reflect marginal costs, and when there are restrictions on transmission capacity.
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