The Impact of Marginal Cost Pricing on Electric Utility Revenues – A Quantitative Case Study By John Kelly Presented at the Rutgers University Center for.

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Presentation transcript:

The Impact of Marginal Cost Pricing on Electric Utility Revenues – A Quantitative Case Study By John Kelly Presented at the Rutgers University Center for Research in Regulated Industries 20 th Annual Western Conference Hyatt Regency, Monterey, California June 28, 2007

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005

Average Generation Costs by Season Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005

Marginal Energy Costs by Season Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005

Marginal Energy Costs and Average Generation Costs by Season

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Average Generation Costs by Month Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005

Marginal Energy Costs by Month

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Marginal Energy Costs and Average Generation Costs by Month

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Time-Of-Use Rate Periods Peak Period Off-Peak

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

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