A New Approach to Peak Load Pricing
Managerial and Decision Economics
This paper explores an alternative method of ‘solving’ the problem of recurring time variable demands in a public utility context. It views the utility's load curve as a series of horizontal layers or ‘slices’ of varying lengths, rather than as a series of vertical slices as in the traditional approach. Several cases are examined, and traditional time-of-day pricing is shown to be inefficient or inapplicable in some of them, while ‘demand-layer’ pricing, based on horizontal slicing, is efficient. In still other cases, neither method of pricing is efficient.
Version of Record can be found through Wiley.
Main, Robert S., "A New Approach to Peak Load Pricing" (1981). Scholarship and Professional Work - Business. 120.