Journal of Electrical Engineering and Technology

The Korean Institute of Electrical Engineers (대한전기학회)
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A Study on Reliability Differentiated Pricing of Firm Capacity

  • Kim, Balho H. (School of Electrical Engineering, HONGIK University)
  • Received : 2011.11.01
  • Accepted : 2012.07.16
  • Published : 2013.01.02
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Abstract

It is known that Reliability Differentiated Pricing (RDP) can improve the efficiency and benefits of consumers and producers. This paper examines the long-run social welfare maximization problem of the utility and presents a long-term reliability differentiated prices for firm capacity, based on customer outage costs. Then the applicability of the proposed pricing scheme is verified with a case study.

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References

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