Comparison of Values of a Spot Market for Electricity,
Abstract
This paper is concerned with a market for electricity that has been successfully operating in Florida since 1978 -- the Florida Energy Broker provides an hourly spot market for energy traded at the wholesale level between utilities with bilateral contracts. The Florida Energy Broker is a central computer matching bids and offers made by participating utilities. Participating utilities as a whole realize important savings. In 1980 savings to utilities exceeded $40 million, roughly two percent of the total fuel bill. These savings are distributed to participating utilities according to a predefined policy. This paper compares the distribution of savings resulting from the Broker policy and two alternative policies: one is defined as the Shapely value applied to the Broker market considered as a cooperative game with possibilities of coalitions, another results from the application of the market clearing price which is the core of the previous game.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1984
- Accession Number
- ADA153160
Entities
People
- F. Labrune
Organizations
- RAND Corporation