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Short-Term Price Formation in the U.S. Uranium Market

A. D. Owen

Year: 1985
Volume: Volume 6
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol6-No3-3
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Abstract:
Since the establishment of a private market for uranium in the United States in the late 1960s, the industry's fluctuating fortunes have been reflected in the short-term price of uranium as represented by NUEXCO's "exchange value."' Exchange values are current prices for current or near-term delivery. While NUEXCO emphasizes that its exchange value is not a "spot" price in the usual sense of the word, it still is generally regarded as an indicator of uranium spot (short-term) market price levels.



Short-Term Price Formation in the U.S. Uranium Market: A Comment

Ferdinand E. Banks

Year: 1986
Volume: Volume 7
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No3-13
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Abstract:
The recent paper in The Energy Journal by A. D. Owen (1985) provided another important example of an econometric relationship for short-term pricing very similar to those presented by Fisher, Cootner, and Baily (1972) for copper, and Banks (1971) for refined zinc. This short comment merely adds an observation to the pricing behavior discussed by Owen. Other useful presentations of this topic are Owen (1983), and Stephany, Bauder, and Lurf (1981).



Investigating Price Formation Enhancements in Non-Convex Electricity Markets as Renewable Generation Grows

Ali Daraeepour, Eric D. Larson, and Chris Greig

Year: 2022
Volume: Volume 43
Number: Number 5
DOI: 10.5547/01956574.43.5.adar
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Abstract:
Continued growth in wind energy penetration increases the demand for operational flexibility on the grid. It is not well-understood if the price formation process in current U.S. electricity markets will appropriately reward the provision of operational flexibility. This study investigates how continued growth in wind penetration impacts conventional marginal pricing efficiency and assesses its ability to remunerate operational flexibility. It also investigates the extent to which alternative marginal pricing schemes that seek to minimize out-of-market payments enhance remuneration of flexibility. Using a custom-built model, we simulate PJM's hourly electricity market outcomes under conventional and alternative marginal pricing schemes for three wind penetration levels. We find that the increasing demand for operational flexibility increases the frequency and magnitude of unrepresentative price events that suppress energy prices and thus the market's ability to remunerate flexibility. We find that the alternative of convex-hull pricing, which minimizes out-of-market payments, can largely overcome these issues.





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