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Finance

Electricity and Gas

1997

Articles 1 - 2 of 2

Full-Text Articles in Business

Using Auctions To Divest Generation Assets, Peter Cramton, Lisa J. Cameron, Robert Wilson Dec 1997

Using Auctions To Divest Generation Assets, Peter Cramton, Lisa J. Cameron, Robert Wilson

Peter Cramton

In most states, ratepayers will compensate utilities for their stranded costs. As a result, these costs must be measured as accurately as possible, in a manner that is easily understood by all concerned parties. We describe the options for measuring stranded costs and argue that a simultaneous ascending auction is the best approach.


Auction Design For Standard Offer Service, Peter Cramton, Andrew Parece, Robert Wilson Jun 1997

Auction Design For Standard Offer Service, Peter Cramton, Andrew Parece, Robert Wilson

Peter Cramton

During the transition to a competitive electricity market, when a consumer does not select an electricity provider, who provides service to the customer and at what price? An auction for this "standard offer service" is a market-based way to assign the service responsibility and to determine its price. We explore the design issues in establishing rules for such an auction.