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Risk and benefits assessment of long and short term capacity contract strategies

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1 Author(s)
Trezos, Thanos ; Southern California Edison Co., Rosemead, CA, USA

A planning methodology is developed for purchasing firm capacity. The methodology evaluates the risk and benefits associated with long- and short-term capacity contracts. It facilitates the selection of a contract strategy that satisfies the capacity requirements of a utility company within its financial and operating constraints. In simplified form the issue addressed in this study is when a utility company should sign its next capacity contract, for how many megawatts, at what price, and for what duration

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Power Systems, IEEE Transactions on  (Volume:4 ,  Issue: 3 )