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The Fortnightly 100 Revisited: Do Utility Stock Prices Reflect Operational Efficiency?

Fortnightly Magazine - February 15 1999

of the entropy index (H), which is a useful measure of dispersion, or inversely, concentration. As applied here, it is represented analytically as follows:

Where MWh is the power produced by fuel i (i = 1 ¼ ), MWht^ denotes total generation, and "log" is the natural logarithm. In order to facilitate interpretation of the results, we use "relative entropy," the "G" index, defined as follows:

Note that when only one fuel or generation source is used, since G is indeterminate, its value is set to zero.

7 POWERDAT( is a registered trademark of Resource Data International Inc., Boulder, Colo.

 

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