Managing the risk of performance based rates

被引:78
作者
Brown, RE [1 ]
Burke, JJ [1 ]
机构
[1] ABB Elect Syst Technol Inst, Raleigh, NC 27606 USA
关键词
D O I
10.1109/59.867190
中图分类号
TM [电工技术]; TN [电子技术、通信技术];
学科分类号
0808 [电气工程]; 0809 [电子科学与技术];
摘要
A profound consequence of deregulation is the emergence of performance based rates (PBR's). PBR's are contracts that penalize and/or reward a utility based on system performance. These contracts can be based on average system reliability, or can be based on individual customer reliability. In either case, utilities are exposed to financial risk due to the uncertainty of system reliability. This paper presents a method of assessing the uncertainty of system reliability and discusses how to use this information to manage PER risk. This method can be used to negotiate a fair PBR, to compute the expected financial impact of a PER, and to make dei sign decisions that maximize profits while minimizing risk.
引用
收藏
页码:893 / 898
页数:6
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