Electricity Supply

Abstract

In Part Four we now explore some of the policy implications and applications of the analysis of the earlier parts. Chapter 10 will examine the general application of this analysis to electricity supply. We have chosen electricity supply for illustrating this analysis because of its obvious current importance and because of its classic status in the peak-load and public utility literature. Chapter 10 provides a perspective on the economic and technical characteristics of electricity supply as well as on the history of rate-making in the industry. Chapter 11 then examines the issue of energy conservation in greater detail, and in particular the use of peak-load pricing to promote energy conservation. Chapter 12 presents a concluding discussion of our analysis and its applications to electricity supply, with our view of needed future research.