Skip to main content

Opportunities for Stochastic and Probabilistic Modeling in the Deregulated Electricity Industry

  • Conference paper
Decision Making Under Uncertainty

Part of the book series: The IMA Volumes in Mathematics and its Applications ((IMA,volume 128))

Abstract

At the turn of the twentieth century, electric power was an exciting new technology. Capital flowed into highly leveraged entities that built power plants and wires in urban centers across the developed world. As time progressed electric utilities came under government regulation or control.

At the time this paper was written, this author was employed by PG&E Energy Services, San Francisco, CA 94104.

At the time this paper was written, this author was employed by PG&E Energy Trading, Bethesda, MD 20814.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. F. Alvarado, The stability of power system markets, IEEE Transactions on Power Systems, 14 (1999), pp. 505–511.

    Article  Google Scholar 

  2. H. Baleriaux, E. Jamopulle, and F.L.D. Guertechin, Simulation de Vexplotiation d’un parc de machines thermiques de production d’èlectricitè couplé à des stations de pompage, Extrait de la Revue E, 5 (1967), pp. 3–24.

    Google Scholar 

  3. R.E. Bohn, M.C. Caramanis, and F.C. Schweppe, Optimal pricing in electrical networks over space and time, Rand Journal of Economics, 15 (1984), pp. 360–376.

    Article  Google Scholar 

  4. R.R. Booth, Power system simulation model based on probability analysis, IEEE Transactions, PAS-91 (1972), pp. 62–69.

    Google Scholar 

  5. A. Dixit and R.S. Pindyck, Investment Under Uncertainty, Princeton University-Press, Princeton NJ, 1994.

    Google Scholar 

  6. L.A.F.M. Ferreira, T. Andersson, C.F. Imparato, T.E. Miller, C.K. Pang, A. Svoboda, and A. Vojdani, Short-term resource scheduling in multi-area hydrothermal power systems, Electric Power and Energy Systems, 11 (1989), pp. 200–212.

    Article  Google Scholar 

  7. R.J. Green and D.M. Newbery, Competition in the british electricity spot market, Journal of Political Economy (1992).

    Google Scholar 

  8. S. Hao, G.A. Angelidis, H. Singh, and A.D. Papalexopoulos, Consumer payment minimization in power pool auctions, IEEE Transactions on Power Systems, 13 (1998), pp. 986–991.

    Article  Google Scholar 

  9. W.W. Hogan, Contract networks for electric power transmission, Journal of Regulatory Economics, 4 (1992), pp. 211–242.

    Article  Google Scholar 

  10. J. Jacobs, Artificial power markets and unintended consequences, IEEE Transactions on Power Systems, 12 (1997), pp. 968–972.

    Article  Google Scholar 

  11. J. Jacobs, G. Freeman, J. Grygier, D. Morton, G. Schultz, K. Staschus, J. Stedinger, and B. Zhang, Stochastic Optimal Coordination of River-basin And Thermal Electric Systems (SOCRATES): A system for scheduling hydroelectric generation under uncertainty, Annals of Operations Research, 59 (1995).

    Google Scholar 

  12. R.B. Johnson, A.J. Svoboda, C. Greif, A. Vojdani, and F. Zhuang, Positioning for a competitive electric industry with PG&E’s hydro-thermal optimization model, Interfaces, 28 (1998), pp. 53–74.

    Article  Google Scholar 

  13. M. Karamouz and H.V. Vasiliadis, Bayesian stochastic optimization of reservoir operation using uncertain forecasts, Water Resources Research, 28 (1992), pp. 1221–1232.

    Article  Google Scholar 

  14. P.D. Klemperer and M.A. Meyer, Supply function equilibria in oligopoly under uncertainty, Econometrica, 57 (1989).

    Google Scholar 

  15. M.V.F. Pereira and L.M.V.G. Pinto, Multi-stage stochastic optimization applied to energy planning, Mathematical Programming, 52 (1991), pp. 359–375.

    Article  MathSciNet  MATH  Google Scholar 

  16. F.C. Schweppe, M.C. Caramanis, R.D. Tabors, and R.E. Bohn, Spot Pricing of Electricity, Kluwer Academic Publishers, Boston MA, 1988.

    Book  Google Scholar 

  17. S. Takriti, B. Krasenbrink, and L.S.-Y. Wu, Incorporating fuel constraints and electricity spot prices into the stochastic unit commitment problem, Operations Research, 42 (2000), pp. 268–280.

    Article  Google Scholar 

  18. W. Vickrey, Counterspeculation, auctions and competitive sealed tenders, J. Finance, 16 (1961), pp. 8–37.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2002 Springer-Verlag New York, Inc.

About this paper

Cite this paper

Jacobs, J.M., Schultz, G.L. (2002). Opportunities for Stochastic and Probabilistic Modeling in the Deregulated Electricity Industry. In: Greengard, C., Ruszczynski, A. (eds) Decision Making Under Uncertainty. The IMA Volumes in Mathematics and its Applications, vol 128. Springer, New York, NY. https://doi.org/10.1007/978-1-4684-9256-9_5

Download citation

  • DOI: https://doi.org/10.1007/978-1-4684-9256-9_5

  • Publisher Name: Springer, New York, NY

  • Print ISBN: 978-1-4419-3014-9

  • Online ISBN: 978-1-4684-9256-9

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics