Title
A Marginal-Cost Pricing Model for Gas Distribution Utilities
Abstract
We develop a natural gas distribution utility pricing model that includes optimization of supply mix and capacity expansion, financial analysis of revenue requirements, and design of either average-cost-or marginal-cost-based rates, and apply it using data from the East Ohio Gas Company. The results clearly point to the superiority of marginal-cost over average-cost pricing policies in terms of lesser capital requirements, better capacity utilization and higher end-use economic efficiency.
Year
DOI
Venue
1986
10.1287/opre.34.6.851
Operations Research
Keywords
Field
DocType
marginal cost pricing
Revenue,Economic efficiency,Public economics,Mathematical optimization,Economics,Consumption-based capital asset pricing model,Capacity utilization,Marginal cost,Financial analysis,Cost price,Capital requirement,Environmental economics
Journal
Volume
Issue
ISSN
34
6
0030-364X
Citations 
PageRank 
References 
3
0.63
1
Authors
1
Name
Order
Citations
PageRank
J. M. Guldmann130.63