Electricity Marginal Cost Pricing

Monica Greer is a Senior Quantitative Analyst based in Kentucky, United States. Her role includes forecasting market shares for appliances, performing analysis and deriving price elasticities for clients. Previously, she was a Senior Business Consultant and Economist, and a Senior Economist for the Louisville Gas and Electric Company, managing impacts of various carbon-related policies on customer demand and performed load research and analysis. Monica is also currently an Adjunct Faculty member of the Department of Economics at Bellarmine University in Kentucky and taught previously at Jefferson Community College, University of Kentucky, and Indiana University. Monica earned a PhD in economics from the University of Kentucky, an MA in economics from Indiana University, and a BBA in finance from the University of Kentucky. She was awarded into the University of Kentucky Honors Program, has published two books, both with Elsevier, and has published several journal articles and provided presentations.

Packed with case studies and practical real-world examples, Electricity Marginal Cost Pricing Principles allows regulators, engineers and energy economists to choose the pricing model that best fits their individual market. Written by an author with 13 years of practical experience, the book begins with a clear and rigorous explanation of the theory of efficient pricing and how it impacts investor-owned, publicly-owned, and cooperatively-owned utilities using tried and true methods such as multiple-output, functional form, and multiproduct cost models. The author then moves on to include self-contained chapters on applying estimating cost models, including a cubic cost specification and policy implications while supplying actual data and examples to allow regulators, energy economists, and engineers to get a feel for the methods with which efficient prices are derived in today's challenging electricity market.

1. Introduction2. The Theory of Natural Monopoly3. Regulation and Policies pertaining to the Electric Utility Industry4. Economics and Econometrics of Cost Models5. Estimating Cost Models6. Case Study: Cubic Cost Model to Estimate the Marginal Cost of Providing Electricity to End Users7. Case Study: Cost Models to Illustrate Price and Substitution Elasticities Using KLEM Data8. The Theory of Efficient Pricing9. The Price and Substitution Elasticities of Demand Models10. Case Study: Real-Time Pricing of Electricity