TY - JOUR
KW - Power system economics
KW - Electricity supply industry
KW - Active electricity market
KW - Competitive environment
KW - Competitive market
KW - Costing
KW - Decision analysis
KW - Deregulated competitive electricity market
KW - Electric utility
KW - Electricity options pricing
KW - Fluid electricity market
KW - Independent power producer
KW - Integrated resource planning
KW - Market risks exposure
KW - Options pricing theory
KW - Power marketers
KW - Power portfolio management
KW - Project management
KW - Project valuation
KW - Risk management
KW - Risky projects
KW - Texas
KW - Us electric utility industry deregulation
AU - Shams N Siddiqui
AB - <p>Deregulation in the US electric utility industry has lead to the entry of many new market participants, particularly power marketers, which in turn has lead to a much more active and fluid electricity market. With the advent of new market instruments that can be used to hedge one's exposure to market risks, power portfolio management takes on new meaning and new tools and techniques can be used to manage risk. This paper concentrates on long-term project valuation and power portfolio management issues in a competitive environment. It describes a method of valuing risky projects based on options pricing theory and decision analysis and its implementation to long-term power portfolio management or integrated resource planning for an electric utility in Texas. The author believes that the methodology described in this paper has wide application in the deregulated competitive electricity market from integrated resource planning for utilities facing competition and valuing a power plant investment by an independent power producer to pricing electricity options.</p>
BT - IEEE Transactions on Power Systems
DA - 02/2000
IS - 1
LA - eng
M1 - 1
N1 - <p>TY - JOUR</p>
N2 - <p>Deregulation in the US electric utility industry has lead to the entry of many new market participants, particularly power marketers, which in turn has lead to a much more active and fluid electricity market. With the advent of new market instruments that can be used to hedge one's exposure to market risks, power portfolio management takes on new meaning and new tools and techniques can be used to manage risk. This paper concentrates on long-term project valuation and power portfolio management issues in a competitive environment. It describes a method of valuing risky projects based on options pricing theory and decision analysis and its implementation to long-term power portfolio management or integrated resource planning for an electric utility in Texas. The author believes that the methodology described in this paper has wide application in the deregulated competitive electricity market from integrated resource planning for utilities facing competition and valuing a power plant investment by an independent power producer to pricing electricity options.</p>
PY - 2000
SP - 116
EP - 121
T2 - IEEE Transactions on Power Systems
TI - Project valuation and power portfolio management in a competitive market
VL - 15
ER -