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Sep 08, 2014 to Sep 10, 2014 | Chicago, IL
Sep 29, 2014 to Oct 03, 2014 | Michigan State University, Lansing MI
Oct 01, 2014 to Oct 03, 2014 | Washington, DC

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Public Utilities Reports

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Incremental pricing

Off Peak

Wallace Edward Brand

Capacity and energy go together like corned beef and cabbage (em

even a two-handed economist can see that.The June 11 Power Broker decision from the D.C. Circuit, involving Florida Power and Light Co. (FP&L) and certain wholesale customers (see sidebar), reminds one that a dish of corned beef and cabbage tastes better when you don't leave out the cabbage.

On the surface, the case indicts the idea of average-cost pricing: "All hands recognize that the

problem originates in the use of average costs . . .

Incremental-Cost Pricing: What Efficiency Requires

Alfred F. Mistr, Jr.

In thinking about transmission pricing for a competitive electric industry, we should remember that the fundamental objective of competition is to increase economic efficiency. Improved economic efficiency, after all, leads to better use of resources, lower costs, and long-term benefits for consumers.