Application of financial options theory to electric utility decision making in integrated resource planning and maintenance shutdowns

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Increased competition in wholesale power generation will allow electric utilities to use financial models to improve their decision making. This competition will result in the creation of electricity spot, futures, and forward markets, which will provide necessary information for utility executives to used advance financial tools, such as random walk models and options theory. These models will allow executives to place a value on risk. Once this value is known, executives can determine how best to manage that risk, whether by entering into financial transactions, adjusting their operational and planning decisions, or both.

Original languageEnglish
Title of host publicationProceedings of the American Power Conference
Editors Anon
PublisherIllinois Inst of Technology
Pages1013-1017
Number of pages5
Volume57-2
Publication statusPublished - 1995
EventProceedings of the 57th Annual American Power Conference. Part 1 (of 3) - Chicago, IL, USA
Duration: Apr 18 1995Apr 20 1995

Other

OtherProceedings of the 57th Annual American Power Conference. Part 1 (of 3)
CityChicago, IL, USA
Period4/18/954/20/95

ASJC Scopus subject areas

  • Nuclear Energy and Engineering
  • Electrical and Electronic Engineering
  • Mechanical Engineering

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  • Cite this

    Felder, F. (1995). Application of financial options theory to electric utility decision making in integrated resource planning and maintenance shutdowns. In Anon (Ed.), Proceedings of the American Power Conference (Vol. 57-2, pp. 1013-1017). Illinois Inst of Technology.