Search

Begin New Search
Proceed to Checkout

Search Results for All:
(Showing results 1 to 10 of 10)

Next 10 >>


Peak and Off-Peak Industrial Demand for Electricity: The Hopkinson Rate in Ontario, Canada

Dean C. Mountain and Cheng Hsiao

Year: 1986
Volume: Volume 7
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No1-10
View Abstract

Abstract:
The Hopkinson rate consists of an energy charge for every kilowatt-hour of electricity a customer uses, plus an additional demand charge, a peak-demand charge on the maximum usage during the month. Historically, industries in North America have generally been charged a Hopkinson rate for electricity use. In 1983, for example, 97 percent (see Blinder [1984]) of the publicly owned electric utilities in North America had demand charges in their commercial/industrial rate structure, whereas only 11 percent had time-of-day rates. However, with the exception of papers by Corio and Trimnell (1978) and Veall (1981), the focus of empirical research on industrial firms (like the focus of research in the residential sector) has been on examining the impact of time-of-use rates (e.g. Chung [1978], Chung and Aigner [1981], and Panzar and Willig [1979]).



Technological Innovation and a Changing Energy Mix - A Parametric and Flexible Approach to Modeling Ontario Manufacturing

Dean C. Mountain, Bill P. Stipdonk and Cathy J. Warren

Year: 1989
Volume: Volume 10
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No4-9
View Abstract

Abstract:
For the purposes of explaining historical trends in relative fuel usage and energy efficiency, an encompassing framework must incorporate both the influence of changing fuel prices and technological change. Schurr (1982), Rosenberg (1983), Jorgenson (1984, 1986) and Berndt (1986) have provided recent documentation of the importance of these two factors in explaining productivity growth. Moreover, these studies indicate that a key to understanding such trends is analysis at the individual industrial sector level.In ignoring the influence of technological change on interfuel substitution, modern studies (e.g., Gopalakrishnan, 1987; Moghimzadeh and Kymm, 1986) have left unaltered the approach taken in the pioneering studies of Berndt and Wood (1975), Fuss (1977), Griffin and Gregory (1976) and Halvorsen (1977).



Chapter 14 - Strategy, Planning and Costing for Decommissioning in Canada

Nihal D. Jayawardene and Peter D. Stevens-Guille

Year: 1991
Volume: Volume 12
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-NoSI-14
View Abstract

Abstract:
Ontario Hydro, the public-owned electric utility in Ontario, Canada, is one of the three largest nuclear utilities in the world. Decommissioning of its CANDU nuclear stations will begin about 2012 when the first station at Pickering is scheduled to be shut down after an operating period of 40 years. Other stations at Bruce and Darlington will be shut down and decommissioned subsequently. The cost of these operations is being charged to customers and is calculated using the annuity method. In this chapter, Nihal Jayawardene and Peter Stevens-Guille describe Ontario Hydro's decommissioning policy, financial planning and method of funding future decommissioning costs. One policy requirement is that future generations should not have to pay for decommissioning costs; deferring costs far into the future is not financially prudent. The current status of public opinion in Canada on decommissioning and radioactive waste management, including the tourism value of a decommissioned reactor, also is discussed.



Estimating Disaggregated Price Elasticities in Industrial Energy Demand

Mahmoud A. T Elkhafif

Year: 1992
Volume: Volume 13
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol13-No4-11
View Abstract

Abstract:
Econometric energy models are used to evaluate past policy experiences, assess the impact of future policies and forecast energy demand. This paper estimates an industrial energy demand model for the province of Ontario using a linear-logit specification for fuel type equations which are embedded in an aggregate energy demand equation. Short term, long-term, own- and cross-price elasticities are estimated for electricity, natural gas, oil and coal. Own- and cross-price elasticities are disaggregated to show the overall price elasticities and the "energy-constant" price elasticities when aggregate energy use is held unchanged. These disaggregations suggest that a substantial part of energy conservation comes from the higher aggregate price of energy and not from interfuel substitution.



Electricity Restructuring in Ontario

Michael J. Trebilcock and Roy Hrab

Year: 2005
Volume: Volume 26
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol26-No1-6
View Abstract

Abstract:
This paper examines the short-lived electricity sector restructuring initiative of the province of Ontario, Canada�s largest province. In May 2002, following years of planning and consultation Ontario opened its retail and wholesale electricity markets to competition. The summer of 2002 saw retail prices reach levels that consumers had never previously encountered. By December 2002, the provincial government froze retail electricity prices, covering approximately half of Ontario�s electricity consumption. While the weather played a significant role in driving prices higher during the summer of 2002, other factors also played a major role. The other factors reviewed in this paper fall into two categories. The first category consists of market design problems, such as market rules (e.g., trading arrangements) and market structure (e.g., the degree of competition in the generation sector). The second category covers political economy problems, in particular the lack of political will to allow retail prices to reflect wholesale prices and to address effectively structural problems in the sector. Finally, this paper examines some of the new restructuring initiatives being pursued by the recently elected provincial government of Ontario as the province continues to struggle to bring order to its electricity sector.



An Oligopolistic Electricity Market Model with Interdependent Segments

Pierre-Olivier Pineau and Georges Zaccour

Year: 2007
Volume: Volume 28
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol28-No3-9
View Abstract

Abstract:
In this paper,we model a two-period electricity market with interdependent demand, where oligopolistic generators make investments in peak-and base-load capacities. Different prices are obtained in the two periods, and residential consumers can react to prices across demand periods. We characterize the Cournot equilibrium obtained as a function of price and cross-price effects and present a numerical illustration based on the Ontario (Canada) electricity market.



High Frequency Export and Price Responses in the Ontario Electricity Market

Angelo Melino and Nash Peerbocus

Year: 2008
Volume: Volume 29
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol29-No4-2
View Abstract

Abstract:
Export responses to unanticipated price shocks can be a key contributing factor to the rapid mean reversion of electricity prices, a phenomenon often seen in electricity markets. In this paper, we use event analysis to demonstrate how hourly export transactions respond to negative supply shocks in the Ontario electricity market. Although event analysis has been used for many years in other applications, particularly finance, to our knowledge this is the first time that this technique has been applied to price response analysis in the electricity market. The analysis clearly demonstrates the sensitivity of export volume to price changes, and more generally, the responses of prices and quantities to an unexpected supply shock.



Retail Gasoline Price Cycles: Evidence from Guelph, Ontario Using Bi-Hourly, Station-Specific Retail Price Data

Benjamin Atkinson

Year: 2009
Volume: Volume 30
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol30-No1-4
View Abstract

Abstract:
This paper uses prices that were directly observed at 27 gasoline stations in Guelph, Ontario, eight times per day for 103 days in late-2005, to examine several basic predictions of a theory of price cycles. It is found that price movements in Guelph are more consistent with the Edgeworth cycle theory than with other dynamic pricing theories. The data also identify some interesting (and somewhat systematic) pricing patterns that have not been identified in previous studies, and which would likely be overlooked with less complete data. These findings are not only of interest to applied economists and policymakers, but also to theoreticians who are interested in refining the theory to make more accurate predictions.



A Dynamic Oligopolistic Electricity Market with Interdependent Market Segments

Pierre-Olivier Pineau, Hasina Rasata, and Georges Zaccour

Year: 2011
Volume: Volume 32
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol32-No4-9
View Abstract

Abstract:
We propose a deterministic, discrete-time, finite-horizon oligopoly model to investigate investment and production equilibrium strategies, in a setting where demand evolves over time and the two market-segment loads (peak-and base-load) are interdependent. The players (generators) compete a` la Cournot, open-loop Nash equilibria are computed and numerical results are discussed. The model is calibrated with data from Ontario, Canada. We assess the impact on equilibrium strategies of a generation sector with more market power than what is actually the case. We also find a slight difference in the investment sequence when interdependent demand segments are considered. Finally, we analyze the impact of increasing demand elasticities over time, and varying the financial values of the production capacities that remain at the end of the planning horizon. We believe that such a tool is valuable for professionals and scholars interested in the dynamics of production capacity mix (portfolio of technologies) in the electricity sector. It is also of paramount importance for public decision makers who have to simultaneously deal with environmental issues and with price control, both of which are politically sensitive.



Ontario's Auction Market for Financial Transmission Rights: An Analysis of its Efficiency

Derek E. H. Olmstead

Year: 2018
Volume: Volume 39
Number: Number 1
DOI: 10.5547/01956574.39.1.dolm
View Abstract

Abstract:
Financial transmission rights (FTR) are financial products that entitle their holder to receive a payment based on the degree of congestion in a transmission system. In many liberalized electricity markets, FTR are sold at auction by the local electricity system operator. This paper addresses several questions about the performance of FTR auctions in Ontario's restructured electricity market, including whether auction market clearing prices approximate realized payouts and whether there is any evidence that the competitiveness of auctions, as measured by the number of bidders, affects the forward market unbiasedness or informational efficiency of the auctions. The paper finds that the auction process is inefficient in the sense that market clearing prices are substantially and systematically lower than realized payouts, resulting in substantial transfers away from consumers. However, there is some evidence that the auction market is more efficient when there are three or more bidders.




Next 10 >>

Begin New Search
Proceed to Checkout

 

© 2022 International Association for Energy Economics | Privacy Policy | Return Policy