A Model for Pricing Interruptible Electric Power Service

  • Chin-Woo Tan
  • Pravin Varaiya
Part of the Progress in Systems and Control Theory book series (PSCT, volume 10)


The current allocation of electric energy is based on a system of fixed prices. In such a system the gap between marginal cost of energy generation and the marginal value of energy consumption, hence the resulting inefficiency, is quite large [10]. One scheme that closes this gap is that of spot pricing, [11], [3], [2].


Equilibrium Price Price System Allocation Rule Spot Price Optimal Contract 
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Copyright information

© Springer Science+Business Media New York 1991

Authors and Affiliations

  • Chin-Woo Tan
    • 1
  • Pravin Varaiya
    • 1
  1. 1.Department of Electrical Engineering & Computer SciencesUniversity of CaliforniaBerkeleyUSA

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