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 language | English |
|---|---|
| Title of host publication | Proceedings of the American Power Conference |
| Editors | Anon |
| Publisher | Illinois Inst of Technology |
| Pages | 1013-1017 |
| Number of pages | 5 |
| Volume | 57-2 |
| Publication status | Published - 1995 |
| Event | Proceedings of the 57th Annual American Power Conference. Part 1 (of 3) - Chicago, IL, USA Duration: Apr 18 1995 → Apr 20 1995 |
Other
| Other | Proceedings of the 57th Annual American Power Conference. Part 1 (of 3) |
|---|---|
| City | Chicago, IL, USA |
| Period | 4/18/95 → 4/20/95 |
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ASJC Scopus subject areas
- Nuclear Energy and Engineering
- Electrical and Electronic Engineering
- Mechanical Engineering
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.